Companies

Coffee Day to sell IT park in Bengaluru to Blackstone

Our Bureau Bengaluru | Updated on August 14, 2019 Published on August 14, 2019

Companies operating from the tech park include Mindtree, NTT Data and Accenture   -  NS

PE company to pay up to ₹3,000 crore

Coffee Day Enterprises Ltd’s board on Wednesday approved the sale of its 120-acre Global Village Tech Park here to private equity firm Blackstone in a transaction valued at ₹2,600-3,000 crore.

The tech park, owned by its subsidiary Tanglin Developments, has a total built-up area of 3.3 million sq ft and features modern facilities and landscaped gardens. Companies operating from there include Mindtree, Accenture, NTT Data, Sonata Software and Textron.

In a BSE filing, Coffee Day said it has inked a non-binding letter of intent and the transaction closure is subject to the completion of Blackstone’s due diligence and regulatory approvals. The deal is expected to conclude in 40 days.

The board thanked Blackstone for its “professional and transparent approach and quick turnaround time displayed under adverse market conditions”.

Earlier negotiations

Sources within the company said Coffee Day founder VG Siddhartha, who died under mysterious circumstances last month, had been in talks with Blackstone for the deal earlier this year. But it did not materialise then as he was not willing to accept a valuation of less than ₹3,000 crore.

 

The Coffee Day board has also approved, in principle, the sale of its step-down subsidiary AlphaGrep Securities Pvt Ltd to Illuminati Software Pvt Ltd for about ₹28 crore. Sadananda Poojary, Coffee Day’s company secretary and Compliance Officer, said in the BSE filing that the two deals will significantly help deleverage the Coffee Day Group.

 

Published on August 14, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.