Coffee Day jumps 5% as PE firms look to pick stake in firm

NEW DELHI: Shares of Coffee Day Enterprises rose 5 per cent in Friday's trade after it signed non-disclosure agreements with private equity firms KKR, TPG Capital and Bain Capital for initiating discussions on a significant stake buy in the group’s coffee business.

The PE firms are expected to begin due diligence shortly.

Following the development, the scrip hit its 5 per cent upper circuit limit at Rs 45.85 on BSE.


The Dutch agro commodity, shipping and finance firm Louis Dreyfus Company BV is also expected to join the race but is yet to sign an NDA, ET reported.

KKR India CEO Sanjay Nayar stepped down from the board of CDEL on November 11 in view of the negotiations.
The company had in September appointed IDFC Securities as the advisor to identify a strategic option for divestment and advise on the refinancing of existing debt.

The board is expected to speed up talks with interested investors once the investigation report by former CBI official Ashok Kumar Malhotra is submitted. He’s looking into the letter that Café Coffee Day founder VG Siddhartha purportedly wrote to the board on July 27, two days before he went missing.