Companies

Tech park sale: Coffee Day Enterprises looks to close ₹2,700-crore deal next week

Our Bureau Bengaluru | Updated on February 07, 2020 Published on February 07, 2020

Coffee Day Enterprises is expected to close the deal with Blackstone and its partners to divest its entire stake in Global Village Technology Park next week.

The deal to sell off the tech park for ₹2,700 crore was finalised last year. The receipts of the first tranche of these funds will reduce the debt by ₹1,700 crore, CDE said in a statement to the BSE. The statement also said that it is engaged in active negotiations for dis-investment of its stake in Sical Logistics Ltd to further reduce the debt. The debt levels have reduced significantly from ₹7,200 crore at the beginning of the financial year (April 2019) to around ₹4,800 crore and the company is looking forward to end the financial year 2019-20 with a reduced debt levels of ₹1,800 crore.

The current management is working steadfast to ensure better liquidity and operational efficiency, the statement said.

The company also said the report of the investigating team which was hired to probe the the circumstances leading to statements made in the letter of the former Chairman late V G Siddhartha dated July 27, 2019 and to scrutinise the books of accounts of the Company and its subsidiaries is under progress. “The said assignment is under progress and has taken long time due to coverage of as many as 48 subsidiary companies and the investigation report is likely to be tabled shortly.”

The delay in submission of the limited review financials for the last two quarters is mainly due to non-completion of investigation report. The limited review financials will be submitted after the completion of investigation report which will help invoke the suspension of trading in the stock exchange, the statement said.

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Published on February 07, 2020
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