The board of Tata Consumer Products has approved a proposal to evaluate the buyout and is planning a non-binding bid, reports in a section of media have said.
Tata Consumer Products share price gained more than 3 percent intraday on September 25 following reports that the company was planning a non-binding bid for the vending machine business of Coffee Day Enterprises Ltd.
The board of Tata Consumer Products has approved a proposal to evaluate the buyout and is planning a non-binding bid, a Bloomberg report said.
CDEL, which owns the Cafe Coffee Day chain, is asking for $271 million valuation for the vending-machine business, sources told the news agency.
Moneycontrol could not independently verify the story.
The stock was trading at Rs 506.95, up Rs 18.20, or 3.72 percent. It has touched an intraday high of Rs 511.95 and an intraday low of Rs 495.20. It witnessed a spurt in volume by more than 1.06 times and was trading with volumes of 155,000 shares.
Coffee Day is looking to induct strategic and financial partners into businesses as part of an ongoing reconstructing exercise, a representative told Bloomberg. A representative for Tata Consumer had not responded to a request for comment.
The discussions with Tata Consumer are in early stages and CDEL is also in talks with other potential buyers for the business, the report said.
Coffee Day Group has been working on selling its assets to clear its debt. In March, it sold its Global Village Technology Park to Blackstone Group for Rs 2,700 crore.The Tata Group has a presence in the coffee chains space through a joint venture with Starbucks in India.