Business

Coffee Day to sell stock broking arm to Shriram

Firm’s divestment to cut group debt

Coffee Day Enterprises has entered into a definitive agreement to sell its stock broking entity, Way2Wealth Securities and some of its subsidiaries to Shriram Ownership Trust.

The trust is the promoter of Shriram Capital Ltd., the holding company of the Shriram Group’s NBFC and insurance businesses.

The acquisition will be subject to the closing conditions and required statutory approvals, as per company’s stock exchange filing on Thursday.

“The above-mentioned transaction shall help in further deleveraging the Coffee Day Group and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers,’’ said the company in its filing.

Coffee Day Enterprises has several subsidiaries, including Coffee Day Global (the cafe business) Sical Logistics, Tanglin Developments (realty), Way2Wealth (financial services), and Coffee Day Hotels and Resorts (hospitality).

Sale of tech park

The group expects to close the proposed sale of its 120-acre Global Village technology park in Bengaluru to American private equity giant Blackstone anytime soon.

The Ministry of Commerce had recently cleared the deal.

Yes Bank had recently acquired a 10.25% stake in Sical Logistics by invoking pledged shares.

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Printable version | Jul 5, 2020 11:20:25 PM | https://www.thehindu.com/business/coffee-day-to-sell-stock-broking-arm-to-shriram/article30636733.ece

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