Shares of Coffee Day Enterprises rose 5 percent to Rs 75.50 in the early trade on September 18 after the company executed definitive agreements for investment in GV Techparks at an enterprise value of Rs 2,700 crore.
The company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Private Limited, a wholly owned subsidiary of Tanglin Development (TDL).
The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark.
The transaction is at an enterprise value of Rs 2,700 crore subject to certain closing adjustments.
The closing of the deal is subject to the conditions, including regulatory approvals.
This transaction will substantially bring down the debt of the group which disclosed to be Rs 4,970 crore on August 17, the company added.
The expected date of completion of transaction is on or before October 31, for the first tranche of investment.
At 0945 hours, Coffee Day Enterprises was quoting at Rs 75.50, up Rs 2.75, or 3.78 percent, on the BSE.
News Source: moneycontrol