Diversified group ITC on Wednesday denied that it was in the race to acquire Coffee Day Enterprises though it was approached for a deal.
A report had said the Kolkata-based group having a presence in cigarettes to hospitality and IT, is considering a bid to buy a stake in the Coffee Day Enterprises that runs Cafe Coffee Day chain.
A Bloomberg report had said that ITC Limited was given access to Coffee Day’s assets and financial for due diligence. The report had said that Kolkata headquartered ITC seeks to diversify away from tobacco products as India raises taxes on tobacco and restricts smoking in public places.
When contacted, an ITC spokesperson said, "ITC receives enquiries from market participants on an ongoing basis which are suitably evaluated. One such enquiry was received from an intermediary on Cafe Coffee Day. However, no progress was made on the matter."
Meanwhile, shares of Coffee Day Enterprises were locked in the upper circuit for the third consecutive day on Wednesday following the reports that ITC was considering a bid to buy a stake in the cafe chain operator.
The stock rallied 16.1 percent in three straight sessions. The stock was locked in 5 percent upper circuit at Rs 72.80 on the BSE, Moneycontrol reported. The stock fell 68.5 percent in the 16 sessions earlier, due to the untimely death of founder VG Siddhartha on 29 July.
Debt-laden Coffee Day Enterprises has also been linked with Coca Cola as the company seeks to reduce its liabilities.
Last week, the company had announced the sale of its Global Village Tech Park in Bengaluru to Blackstone for up to Rs 3,000 crore to cut its debt.
"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," it had said.
Last week, Coffee Day group said its total outstanding debt was Rs 4,970 crore, including Rs 4,796 crore secured loans and Rs 174 crore in unsecured loans.
"The management has decided to clarify its debt position, the expected reduction and post conclusion of the ongoing divestment transactions," said the company in a regulatory filing on the BSE.
Of the total debt, that of Coffee Day Enterprises Ltd is Rs 480 crore, Coffee Day Global Ltd is at Rs 1,097 crore, Way 2 Wealth Ltd at Rs 121 crore, Tanglin Developments Ltd at Rs 1,622 crore, Tanglin Retail Reality Developments Ltd Rs 15 crore, Coffee Day Hotels and Resorts Ltd Rs 137 crore, Sical Logistics Ltd Rs 1,488 crore and Magnasoft Consulting India Ltd Rs 10 crore.
With inputs from PTI
Updated Date: Aug 21, 2019 18:36:13 IST