Coffee Day Enterprises to sell 85.53% stake in Way2Wealth to Shriram Credit

Enterprise value of the business being pegged at Rs 65 crore

Coffee Day Enterprises Ltd (CDEL) on Friday said that it has entered into a share purchase agreement with Shriram Credit Company Limited as a part of which the latter would acquire 85.53 per cent in its subsidiary Way2Wealth Securities at an enterprise valuation of Rs 65.07 crore. Shriram Credit Company Limited is an affiliate of Shriram Ownership Trust.

“A portion of the consideration is subject to receipt of receivables, and a portion of the consideration shall be withheld and released subject to conditions agreed upon in the share purchase agreement,” CDEL said in a filing with the exchanges on Friday.

In January this year, the Bengaluru-based company had signed a definite agreement to sell its brokerage business to Shriram Ownership Trust. The transaction shall help in further deleveraging the Coffee Day Group and ensuring smooth operations while safeguarding the interests of all stakeholders, the company had stated at the time.

After the demise of CDEL's founder chairman, VG Siddhartha last year, the conglomerate is facing a liquidity crunch owing to higher interest outgo towards servicing debt. In order to deleverage its balance sheet, it had sealed a deal with private equity major Blackstone and realty firm Salarpuria Sattva Group in September last year to sell the Global Village Tech Park to them.