On Friday, Coffee Enterprises or CCD as is more popularly recognised hit the 5% LC and a new low at Rs.62.95. And today morning, it opened 5% higher, hitting the UC within seconds at Rs.66.05.
The stock is up on unconfirmed news that the promoters of the company have resumed talks with Coca-Cola to sell a major part of their stake in CCD. Prior to the death of VG Siddhartha, it is was reported that he was in talks with Coca-Cola for the stake sale and this news we hear today is a resumption post his death.
Coca-Cola wants to buy controlling stake in CCD while Siddhartha wanted to sell minority stake while retaining control. He was seeking valuation to the tune of Rs.8000 to Rs.10000 crore.
Meanwhile on Saturday, CCD issued a Press Release stating that the total debt of the group, including Sical Logistics and Magnasoft as at Rs. 4970 crore of which Rs.3472 crore was of CCD alone.
The company said that the group is working on debt rsolution plans and CCD had already announced the divestment of Global Village Tech Park (Global Village) held by its subsidiary Tanglin Developments Limited for an aggregate consideration of Rs.2,600 - 3,000 crore. On receipt of the consideration for the sale of Global Village after payment of required Statutory payments, the debt position of Coffee Day Group will reduce around by Rs.2,400 crore.
The Debt Position of Coffee Day Group (excluding SicaL and Magnasoft) post repayment of Debt out of proceeds from sale of Global Village is expected to be around Rs. I ,000 crore in the next 45 days. The Company expected to have a comfortable position to service the reduced debt obligations.
Sical has been working on divestment of certain assets. The proceeds from the divestment is expected to significantly reduce the debt in Sical, which currently stands at Rs.1488 crore.