Coffee day puts logistics subsidiary sic al on sale

DIVESTMENT PLAN Holding firm CDEL aims to raise up to ₹1,500 cr to cut debt

MUMBAI: Coffee Day Enterprises Ltd ( CDEL), the company founded by late coffee tycoonvg Siddhartha, has put its Sical Logistics unit on the block as it seeks to pare debt, three people directly aware of the matter said.

CDEL has hired ICICI Securities as adviser for the potential transaction, which could see the group holding company raise ₹1,000-1,500crore, thepeoplecited above said on condition of anonymity .“cd el is planning to sell the entire promoter stake and assets of sic al logistics ,” said one of the three people cited above. ICICI Securities was appointed last week to find a buyer for sic al Logistics, the person added.

“CDEL’S debt at the consolidated level is around ₹4,400 cr ore. The sale of the Global Village Tech Park will bring down this debt to around ₹2,000 cr ore, while a part of the proceeds from this sale will go to CDEL’S books towards working capital requirements ,” the person said.

On Saturday, CDEL hired Idfc securities to advise on strategic options including the sale of its holding in Coffee Day Global Ltd, the unit that owns India’s largest coffee chain, as well as to advise on refinancing debt.

Onseptember5, Mintreported that the promoter sand lenders of CDEL have shelved a plan to sell a controlling stake in Coffee Day Global after holding initial talks with potential suitors, including Coca-cola and ITC Ltd.

Mint reported on July 30 that Siddhartha was in talks to ur gently refinance a large portion of his and his company’ s outstanding debt. Tang lin Developments Ltd, a real estate subsidiary of CD EL, is closing its sale of the 90- acre Tech Park to New York-based buyout firm Blackstone Group Lp for ₹2,800 crore.