Coffee Day inks deal with Blackstone to sell Global Village for Rs 2,700 cr

Coffee Day Enterprises on Tuesday said it has signed definitive agreements with private equity major Blackstone and Salarpuria Sattva Group for sale of Global Village Tech Park at an enterprising value of Rs 2,700 crore.

The company board had recently approved the sale of prime real estate property GV Tech Park as part of efforts to raise funds for paring the debt.

The company has executed definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Ltd, a wholly-owned subsidiary of Tanglin Development Limited, Coffee Day Enterprises said in a regulatory filing.

"The transaction is at an enterprise value of Rs 2,700 crore subject to certain closing adjustments," the company said.

The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Pvt Ltd, it added.

The closing of the transaction is subject to receipt of regulatory approvals, it added.

"This transaction will substantially bring down the debt level of the group which was earlier disclosed on August 17, 2019 as Rs 4,970 crore," Coffee Day Enterprises said.

The company has been in trouble after its founder VG Siddhartha took his own life as debt strains began to emerge in his company. Since his death, Coffee Day Enterprises has been trying to divest its assets to pare debts.

Coffee Day Enterprises shares on Tuesday ended 2.09 per cent down at Rs 72.75 apiece at BSE.