Coffee Day Enterprises Rises On Selling Bengaluru Tech Park

Shares of the Bengaluru-based cafe chain operator rose as much as 4.95 per cent to Rs 76.35 after the company after market hours informed exchanges that it will sell its Bengaluru tech park to Blackstone Group along with Salapuria Sattva Group.





Blackstone Group along with Salapuria Sattva Group has signed a definitive agreement to purchase the Global Village TechPark of debt-laden Coffee Day Enterprises' subsidiary Tanglin Development Ltd at an enterprise value of Rs. 2,700 crore.









"The board has approved and the company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Ltd, a wholly-owned subsidiary of Tanglin Development Ltd ("TDL"). The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Private Ltd," Coffee Day Enterprises said in a statement.





Coffee Day said that the transaction will substantially bring down the debt level of the group which was Rs. 4,970 crore as on August 17, 2019.





As of 12:50 pm, Coffee Day shares were up 2.2 per cent at Rs 74.35.



