Shares of Coffee Day Enterprises shed 4 percent intraday Tuesday after the company decided to sell its stake in Mindtree.
Coffee Day Trading, a subsidiary of Coffee Day Enterprises, and VG Siddhartha, promoter of the company along with certain other parties have signed a definitive agreement to sell their entire stake in Mindtree to Larsen & Toubro for a consideration not exceeding Rs 3,269 crore, the company said in BSE release.
The proceeds would be used to pare down the Coffee Day Group’s debt. This divestment supports the company’s business strategy to devote more time to its flagship coffee business, it added.
VG Siddhartha, Chairman of the company said: “This business restructuring allows us to sharpen our portfolio focus and devote more time towards the strategy for our coffee business. We remain committed towards achieving overall growth in our business by focusing on execution and increasing shareholder value. ”
The transaction is expected to close in the first quarter of FY20 and is subject to customary closing conditions, including regulatory approvals being received.
At 11:00 hrs, Coffee Day Enterprises was quoting at Rs 298.50, down Rs 11.15, or 3.60 percent, on the BSE.