1 min read.Updated: 26 Feb 2020, 04:43 PM ISTBaiju Kalesh and Anto Antony
The embattled Coffee Day, which runs India’s largest coffee chain, has been trying to sell assets to repay its debt after the unexpected death of its founder V. G. Siddhartha last year
Blackstone Group Inc. has proceeded with the acquisition of Coffee Day Enterprises Ltd.’s technology park as it is set to pay the first tranche of ₹150 crore ($21 million) as soon as Wednesday, people familiar with the matter said.
The fund will pay another ₹2,000 crore in the next two weeks for Global Village Tech Park, said the people, who asked not to be identified as the information is private. The remainder, which is ₹550 crore, will be paid within a year, the people said. The deal values the technology park at ₹2,700 crore.
The embattled Coffee Day, which runs India’s largest coffee chain, has been trying to sell assets to repay its debt after the unexpected death of its founder V. G. Siddhartha last year. Though the company announced on Aug. 14 that it has entered into a non-binding agreement to sell the technology park in Bangalore to Blackstone, the deal got delayed after its creditor Yes Bank Ltd. didn’t issue the so called no-objection certificate for the transaction, Bloomberg News reported in December.
Coffee Day’s lenders, including Yes Bank, have cleared the deal recently, the people said. Tanglin Developments Ltd., the unit of Coffee Day that controls Global Village Tech Park, owes Yes Bank about ₹100 crore, people familiar with the matter have said.
Representatives for Blackstone and Coffee Day declined to comment.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.