Moneycontrol
Get App
Last Updated : Mar 19, 2019 11:35 AM IST | Source: Moneycontrol.com

Coffee Day Enterprises falls 4% on stake sale in Mindtree

The transaction is expected to close in the first quarter of FY20.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Shares of Coffee Day Enterprises shed 4 percent intraday Tuesday after the company decided to sell its stake in Mindtree.

Coffee Day Trading, a subsidiary of Coffee Day Enterprises, and VG Siddhartha, promoter of the company along with certain other parties have signed a definitive agreement to sell their entire stake in Mindtree to Larsen & Toubro for a consideration not exceeding Rs 3,269 crore, the company said in BSE release.

The proceeds would be used to pare down the Coffee Day Group's debt. This divestment supports the company's business strategy to devote more time to its flagship coffee business, it added.

VG Siddhartha, Chairman of the company said: "This business restructuring allows us to sharpen our portfolio focus and devote more time towards the strategy for our coffee business. We remain committed towards achieving overall growth in our business by focusing on execution and increasing shareholder value. "

The transaction is expected to close in the first quarter of FY20 and is subject to customary closing conditions, including regulatory approvals being received.

At 11:00 hrs, Coffee Day Enterprises was quoting at Rs 298.50, down Rs 11.15, or 3.60 percent, on the BSE.

For more market news, click here

First Published on Mar 19, 2019 11:35 am
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant