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VG Siddhartha death: CCD could be put entirely on block, says report

VG Siddhartha death: CCD could be put entirely on block, says report

VG Siddhartha death: CCD could be put entirely on block, says report
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By CNBC-TV18 Jul 31, 2019 10:27:07 AM IST (Published)

The Coffee Day Enterprise, co-founded by the late VG Siddhartha was in talks with cola major Coca-Cola and ITC for an operational partnership with the coffee chain, according to a purported letter written by Siddhartha whose body was found this morning after he was reported missing for over 24 hours in Mangaluru, the report added.

Analysts and industry experts expect the Coffee Day Enterprise to be put entirely on the block as the coffee chain firm has become unsustainable under the current circumstances, The Economic Times reported.

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The Coffee Day Enterprise, co-founded by the late VG Siddhartha, was in talks with cola major Coca-Cola and ITC for an operational partnership with the coffee chain, according to a purported letter written by Siddhartha whose body was found this morning after he was reported missing for over 24 hours in Mangaluru.
The company has called a meeting of board members today to discuss the way forward after the tragic end of Siddhartha, who started with a single cafe in Bengaluru's Brigade Road in 1996.
"There's a lot of uncertainty in the business as of now but given its scale of operation, it is a very attractive buy for any large organisation looking at a coffee or a PE firm with scale," an industry expert told ET on the condition of anonymity.
Coca Cola which was in exclusive talks to pick a significant stake in Siddhartha's flagship coffee business last month may now revise its offer, the report said citing another official, adding that CCD is also in talks with ITC after the exclusivity period with Coca-Cola ended mid-July.
VG Siddhartha was seeking a valuation of Rs 8,000 to Rs 10,000 crore from the cola major, the official said, adding that, "ITC is unlikely to go ahead, and Coca-Cola would be a key contender. Coca-Cola wants to hedge its bets and reduce dependence on its core soft drinks business which has slowed down, and is perhaps looking at global leadership in the coffee business."
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