Cafe Coffee Day (CCD) to initiate stake sale talks with Coca-Cola

By Akshay Kedari  Date: 2019-08-19

Cafe Coffee Day (CCD) to initiate stake sale talks with Coca-Cola

Coca-Cola is trying to expand its influence in the café space as its primary product is experiencing a slump.

Indian café chain operator, Coffee Day Group is reportedly seeking to restart its negotiation with beverage giant Coca-Cola for selling a part of its stake in Café Coffee Day (CCD) unit in a bid to reduce the group’s debt.

Reportedly, late VG Siddhartha, Founder of Coffee Day Group, was earlier in talks with Coca-Cola to close a deal but failed to finalize it due to a conflict in interest. Apparently, Coca-Cola was keen on acquiring a controlling stake in the firm that offers it a dominance over around 1,750 CCD outlets in India, but the founder was willing to offer only a minority stake in the company, allowing him a chance to retain control over the operations.

As per reports, CDEL’s promoters were aiming for a valuation between four-five times that of sales in the coffee unit as per industry trend. However, it is estimated that Café Coffee Day is expected to close with a sale of Rs 2,250 crore by the end of March 2020. Reportedly, the group’s business recorded a revenue of Rs 1,777 crore in FY18 and Rs 1,814 crore in FY19, including from its coffee bean exports unit.

Meanwhile, the current move also follows CDEL signing a deal with the Blackstone Group, an American equity firm that offers alternative asset management, to sell Bangalore’s IT park Global Village Tech Park for Rs 3,000 crore, which will help the group to drop their debt to Rs 1,000 crore.

For the uninitiated, Café Coffee Day currently owns 1,750 stores and has 60,000 vending machines across India. In addition to India, the group has built its outlets in the Czech Republic, Vienna, Egypt and Malaysia as well.

Source Credit: https://economictimes.indiatimes.com/industry/cons-products/food/coffee-day-may-restart-stake-sale-talks-with-coke/articleshow/70730461.cms

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Televisa and Univision announce merger; launch a Spanish media company

Televisa and Univision announce merger; launch a Spanish media company

By Akshay Kedari

The collaboration is aimed at expanding the video streaming portfolio in Spanish-speaking markets. Television Univision has raised USD 1 billion in a Series C funding round led by SoftBank Group Corporation. In recent developments, Mexican broad...

Klevu launches Discovery Suite to boost online retail conversion rates

Klevu launches Discovery Suite to boost online retail conversion rates

By Akshay Kedari

Klevu Oy, a leading provider of AI-based search technologies for online retailers, has reportedly launched a comprehensive solution called Discovery Suite that can allow brands to capture shoppers’ intent in order to improve their conversion ra...

SK Group acquires 16.3% stake in VinCommerce for USD 410 million

SK Group acquires 16.3% stake in VinCommerce for USD 410 million

By Akshay Kedari

SK Group of South Korea has purchased 16.3% of Vincommerce, Vietnams leading retail business operator, for USD 410 million in a bid to broaden its presence in the Southeast Asian region’s customer retailer sector. Sources close to the matter s...

Snapchat exploring options to bypass Apple’s upcoming privacy policies

Snapchat exploring options to bypass Apple’s upcoming privacy policies

By Akshay Kedari

Reportedly, American camera and social media company Snap Inc. is exploring different methods to circumvent Apple’s upcoming privacy regulations which will prohibit apps from collecting iPhone user information. Apple’s highly controversi...

SK Innovation might pull its battery business from the United States

SK Innovation might pull its battery business from the United States

By Akshay Kedari

SK Innovation Co., a South Korea-based petrochemical, energy, and e-mobility battery manufacturer, has recently announced its plans of withdrawing its battery operations from America if U.S. President Joe Biden fails to overrule a trade panel decisio...