Industry

Coffee Day names EY to evaluate potential suitors

Consultant to offer business support

Coffee Day Enterprises has appointed consulting firm EY to do preliminary due diligence on proposals for investment in its subsidiary Coffee Day Global Ltd.

Coffee Day Enterprises, in a regulatory filing on Friday said, “The Board of the Coffee Day Global Limited, material subsidiary of the company in its meeting held on June 5, 2020, appointed EY to provide interim business support services and to perform preliminary due diligence procedures to evaluate the potential proposals for investment, if any, by interested investors in Coffee Day Global Limited.”

Businesses of Coffee Day Global include cafe retail outlets in India and overseas and a large roasting facility in Chikmagaluru. These businesses were valued in the range of ₹6,000-₹6,500 crore, just about a year ago, but the value has now halved to ₹3,000 crore to ₹3,500 crore, a source said.

The plantation part is owned by the founder V.G. Siddhartha’s family, but if a buyer shows interest in an integrated deal, the family may be willing to sell the plantations as well, as per sources. “Talks with potential investors slowed down due to the pandemic, but they are back on track now,” said a company official.

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Printable version | Jul 5, 2020 5:12:35 PM | https://www.thehindu.com/business/Industry/coffee-day-appoints-ey-to-conduct-due-diligence/article31760944.ece

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