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The Tata Group is set to close in on two acquisitions — those of Alibaba-backed bigbasket and Cafe Coffee Day’s (CCD) vending machine business — by December 31.
Tata Sons’ board is also expected to take stock of the other initiatives — such as placing a bid for Air India — when it meets on Monday and Tuesday.
“The discussions with both CCD and bigbasket are in advanced stages, and are progressing per plans. The intention is to close both the deals this year itself. However, due to the complexities and permissions required for large deals like these, there is no certainty that they will be closed in the next 10 days,” a source close to the negotiations said.
Tata Group is looking to acquire a minimum of 51 per cent stake in bigbasket, but is keen to increase it to 80 per cent depending on the price. It will invest up to about $1.5 billion in bigbasket, in which China’s Alibaba owns 29 per cent. The other key investors include Abraaj Group, Ascent Capital, Helion Venture Partners, Bessemer Venture Partners and Mirae Asset-Naver Asia.
The group intends to complete the deal through Tata Digital, a subsidiary of Tata Sons.
Another Tata Group firm, Tata Consumer Products, is in talks to acquire the coffee vending business of CCD’s subsidiary Coffee Day Global Ltd (CGDL) for at least ₹1,000 crore.
The deal requires non-objection certificates from CDGL’s 14 lenders, most of which have already been obtained. However, there has been some delay. According to sources, the companies are confident of getting all the approvals soon, though they have not provided a timeline.
The Tata Group, bigbasket and CCD declined to comment.
More on the agenda
The board meet will also discuss the legal row with former chief Cyrus Mistry, placing a bid for national carrier Air India and and the group companies’ expansion plans.
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