Business

CDEL inks pact with Blackstone for Bengaluru tech park in a deal valued at Rs 2,600 to 3,000 cr

ANI | August 14, 2019 06:04 PM
The sale will help the company reduce its debt burden.

Bengaluru (Karnataka) [India], Aug 14 (ANI): Coffee Day Enterprises Ltd (CDEL) said on Wednesday it has signed a non-binding agreement with US-based private equity giant Blackstone for its real estate property Global Tech Village in a deal valued at Rs 2,600 crore to 3,000 crore.

The sale of the 90-acre technology park in Bengaluru will help the company reduce its debt burden which is reported to be in the range of Rs 7,653 crore.

"The Board of Directors today approved the disinvestment of Global Village Tech Park in its subsidiary Tanglin Developments in favour of Blackstone," CDEL said in a statement.

The board has also approved disinvestment in its step-down subsidiary AlphaGrep Securities part of its wealth management subsidiary Way2Weath in favour of Illuminati Software for about Rs 28 crore.

"These transactions will significantly help in deleveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers," it said.

CDEL founder and owner V G Siddhartha's body was found on July 31 after a search operation was launched near Mangaluru in Karnataka. In a letter written by the enterprising coffee baron, he apologised for letting down people and cited pressure from private equity investors and harassment by tax authorities. (ANI)

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