Coffee Day Enterprises surges 12% amid stake sale buzz

NEW DELHI: Shares of Coffee Day Enterprises surged nearly 12 per cent in morning trade on Thursday after reports emerged that beverage maker Coca-Cola is in talks to pick up a significant stake in the country’s largest coffee chain.

ET reported that Coca-Cola has entered exclusive talks to pick up a significant stake in Café Coffee Day (CCD) as the soft drinks giant looks to gain a foothold in the rapidly growing cafés space and hedge risks associated with its core carbonated drinks business.

“The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta, and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management. It would give Coca-Cola a significant scale in the fast-growing café business, compared to soft drinks,” the report quoted a source saying so.


However, Coca-Cola has denied any such development.

“This news is absolutely speculative in nature and as a matter of company policy, we do not have any comments to offer at this point in time,” a Coca-Cola spokesperson said in response to ET’s query.

The first Café Coffee Day was set up in India in 1996. Internationally, CCD has a presence in Vienna, Czech Republic, Malaysia Nepal and Egypt.

The stock pared most gains and closed 3.62 per cent up at Rs 232.10 on BSE.