Shares of Coffee Day Enterprises
extended losses for the 11th consecutive session since after the death of VG Siddhartha, the founder of Coffee Day Group on July 29.
The Board of Directors has approved the disinvestment of Global Village Tech Park in its subsidiary, Tanglin Developments Ltd, in favour of Blackstone. The transaction valuation is about Rs2,600cr-Rs3,000cr and the company has entered into a non-binding letter of intent. The transaction closure is subject to completion of Blackstone's due diligence, documentation and receipt of requisite regulatory approvals, which is expected in the next 3045 days.
Board also takes the opportunity to thank Blackstone for their professional and transparent approach and quick turnaround time displayed under adverse market conditions, the company said in the press release.
Further, the Board has also provided its in-principal approval for disinvestment in its step-down subsidiary, AlphaGrep Securities Pvt. Ltd in favour of Illuminati Software Pvt. Ltd. for an approximate amount of Rs28cr.
The above-mentioned transactions will significantly help in deleveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers, the company added.
Coffee Day Enterprises Ltd is currently trading at Rs66.25, down by Rs3.45 or 4.95% from its previous closing of Rs69.70 on the BSE.