The move will help Coffee Day Group clear some of its debt obligations.
The company’s late founder VG Siddhartha had begun talks with the beverage giant but was reluctant to sell a majority stake, it said.
Coffee Day Enterprises (CDE) owns Café Coffee Day, India’s largest cafe chain that operates 1,750 outlets across the country.
A spokesperson for Coca-Cola declined comment when approached by ET while CDE had not responded to the paper’s request for a reaction.
Moneycontrol could not independently verify the news.
Siddhartha was seeking a valuation of Rs 8,000-10,000 crore for the company when the discussions commenced in June, the report said.
The group's coffee business is expected to generate sales of Rs 2,250 crore in FY20, a senior executive told the publication.
The move will help Coffee Day Group clear some of its debt obligations. The group’s total external borrowings stand at Rs 4,970 crore.
The group recently sold Global Village Tech Park in Bengaluru to Blackstone Group for about Rs 3,000 crore.
The total debt position of Coffee Day Group will reduce by Rs 2,400 crore after the payment for the deal is received.
The divestment by CDE will also help Coca-Cola gain a foothold in the café space, as it tries to expand beyond its core carbonated drinks portfolio.
Sical Logistics, a listed subsidiary of CDE, is also looking to sell some of its assets, CDE said in a statement on August 17.
Siddhartha’s body was pulled out of the Nethravati river on July 31, two days after he went missing.