TPG Capital, a US-based private equity firm, is in preliminary talks to acquire Coffee Day Global Ltd, the owner of Café Coffee Day (CCD), The Economic Times reported, citing two people familiar with the development.
However, according to the ET sources, the talks are still in the initial stage and may not lead to a transaction.
When contacted by the paper, a TPG spokesperson declined to comment while Coffee Day Enterprises Ltd (CDEL) didn’t respond to queries.
On August 19, ET reported that Coffee Day Enterprises has planned to restart discussions with Coca-Cola on selling its stake in the chain.
Coffee Day Enterprises owns 89.6 percent stake in Coffee Day Global, which operates about 1,750 stores across India and nearly 600 Value Express kiosks and 60,000 vending machines that dispense coffee in corporate workplaces and hotels. Coffee Day Global has a debt of about Rs 1,100 crore, the ET report added.
Earlier in the month, the Coffee Day Group sold its 100-acre tech park in Bengaluru to private equity player Blackstone. The deal is valued between Rs 2,600 - Rs 3,000 crore, as first reported by CNBC-TV18. The transaction will be completed once Blackstone finishes its due diligence which should be completed in the next 30- 45 days.