Cafe Coffee Day: Coffee Day Group may restart talks with Coca-cola for stake sale

The promoters of the Coffee Day Group plan to restart talks with the Coca-Cola for selling a major stake in the Cafe Coffee Day (CCD) chain, according to news reports. This decision to sell a major stake in the chain is a bid to reduce the group's debt further. However, the Coca-Cola spokesperson termed this as 'speculative news'.

The Coffee Day group is also planning to divest assets in Sical Logistics, which is also a group company, the report said.

Founder of Coffee Day Group, late VG Siddhartha, was in talks with the Coco-Cola as of June last week. However, the talks stopped because Coca-Cola wanted to buy a major stake in the firm that runs more than 1,500 CCD outlets in India. While Siddhartha was looking to sell a minority stake and wanted to retain control. 

As per the report, the business czar was seeking a valuation of the company somewhere between Rs 8,000 crore and Rs 10,000 crore. 

On the other hand, Coca-Cola plans to launch Coca-Cola COffee stores in 25 markets by year-end. 

As the news emerged that the Coffee Day Group plans to restart talks with Coca-Cola, shares of Coffee Day Enterprises gained on August 19. This shares of Coffee Day Enterprises gained more than 4% on Monday's trade.

The group had recently sold Global Tech Village Park in Bengaluru to Asset Management Company-Blackstone Group for about Rs 3,000 crore.