With YES Bank approval Coffee Day-Blackstone deal almost sealed

In a major relief to Coffee Day Enterprises (CDEL), YES Bank is learnt to have softened its stand and decided to give the ‘no objection’ to sell its Global Village Technology Park to Blackstone Group. Letter of approval is expected to reach Coffee Day Group within the next two-three days.

Last month, private equity firms like KKR, TPG Capital and Bain Capital had approached Coffee Day Enterprises limited expressing interest to buy a significant stake in the group's coffee business. CCD group's debt was reported at Rs7,100 crore in April 2019 but it had come down to Rs 4,980 crore after the sale of a 20.41% stake in Mindtree. In August this year, the board of directors of CDEL(Coffee Day Enterprises Limited) had approved the sale of Global Village Technology Park to Blackstone for up to Rs 3,000 crore.

Private equity firm Blackstone Group LLP's plan to buy the technology park owned by debt-laden Cafe Coffee Day has hit a major roadblock after a lender flashed the red signal to the deal.

Global Village Technology Park owned by Cafe Coffee Day plans to sell it to Blackstone Group, but the coffee venture's largest creditor Yes Bank reportedly did not give its nod to the Rs 2800 crore deal.

The deal got stopped after Yes Bank reportedly put up a condition that “no objection" would be given to the deal only if Coffee Day is ready to repay the entire loan taken by the group from Yes Bank.They told that at least to repay  the loans taken by Coffee Day’s arms-Tangling Developments which owns the tech park and Si-cal Logistics.

Yes Bank has insisted that Coffee Day Group should ideally use the money from the first portion of the Blackstone deal  of Rs 2,000 crore and pay off the group’s dues to Yes Bank rather than paying to the lenders on a  basis.