Coffee Day sells GV Techpark for Rs 2,700 crorehttps://indianexpress.com/article/business/companies/coffee-day-sells-gv-techpark-for-rs-2700-crore-6004574/

Coffee Day sells GV Techpark for Rs 2,700 crore

The transaction will bring down the group’s debt, which stood at Rs 4,970 crore as on August 17, 2019.

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CDEL indicated that the completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark.

Coffee Day Enterprises (CDEL) announced on Tuesday that it has signed definitive agreements with entities belonging to private equity firm Blackstone and Salarpuria Sattva Group for investment into GV Techpark, a wholly-owned subsidiary of Tanglin Development (TDL), at an enterprise value of Rs 2,700 crore.

“The due diligence was completed on Monday night. Blackstone will own 80 per cent of the asset while Salarpuria will own 20 per cent,” said a source aware of the matter.

The transaction will bring down the group’s debt, which stood at Rs 4,970 crore as on August 17, 2019. CDEL indicated that the completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark. CDEL also indicated that the transaction will happen in two tranches — first tranche of Rs 2,000 crore followed by a second tranche of Rs 700 crore.

Tuesday’s announcement came post market hours.— FE