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Coffee Day Enterprises sells Bengaluru IT park to Blackstone for Rs 2,700 crore, shares climb 5%

In a regulatory filing to the exchanges, the Coffee Day Enterprises said that it had signed definitive agreements with Blackstone Group and Bengaluru-based real estate developer Salarpuria Sattva Group for investment in GV Techparks Private Limited, a wholly-owned subsidiary of Tanglin Development Limited (TDL).

twitter-logo BusinessToday.In        Last Updated: September 18, 2019  | 15:28 IST
Coffee Day Enterprises sells Bengaluru IT park to Blackstone for Rs 2,700 crore, shares climb 5%
The stock price of CCD rose 0.34% to Rs 73 in the morning session, against the last closing price of Rs 72.75 on BSE. It later climbed 5% to touch the intraday high of Rs 75.50.

Shares of Coffee Day Enterprises rose 5% in the early trading session on Wednesday after the company announced that it has executed definitive agreements for investment in GV Techparks.

The stock price of CCD rose 0.34% to Rs 73 in the morning session, against the last closing price of Rs 72.75 on BSE. It later climbed 5% to touch the intraday high of Rs 75.50.

Meanwhile, nearly 0.73 lakh and 9 lakh shares changed hands on BSE and NSE respectively. The stock with a face value of Rs 10, has risen 10% in a week's period and over 12% in a month.

Coffee Day Enterprises has closed the first divestment in a bid to bring down its admitted debt of Rs 4,970 crore. In a regulatory filing to the exchanges, the company said that it had signed definitive agreements with Blackstone Group and Bengaluru-based real estate developer Salarpuria Sattva Group for investment in GV Techparks Private Limited, a wholly-owned subsidiary of Tanglin Development Limited (TDL). The transaction is at an enterprise value of Rs 2,700 crore subject to certain closing adjustments, the filing added.

According to the agreement, Coffee Day Enterprises Limited (CDEL) is expected to realize the sale value in two tranches. The first tranche of Rs 2,000 crore will be received by on completion of certain conditions including regulatory approval. The remaining Rs 700 crore will be realized upon fulfilling additional conditions. The closing of the deal is subject to the conditions, including regulatory approvals.

As of 12:45 IST, the share price of Coffee Day Enterprises was trading at Rs 75.50, up 2.2% on the BSE.

By Rupa Burman Roy

 

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