Post Date : September 9, 2019
Café chain operator Café Day Enterprises has put Sical Logistics unit on sale to pare the debt after the sudden demise of its founder V.G Siddhartha.
According to sources, for the sale of Sical Logistics, Coffee Day Enterprise Ltd. (CDEL) has hired ICICI Securities as their advisor for the potential transaction. CDEL hope to raise INR 1000-1500 crores through the sale. Sical Logistics will be holding its 64th Annual General Meeting on September 12.
A person aware of the matter anonymously told Logistics Insider, “Sical Logistics which accounts for 20% share in CDEL is already in debt as it is an asset-heavy business. Selling it is a challenge but also a good strategic option to support the core business of coffee. It was Siddhartha’s passion and not a core business. Thus, if selling it can help CDEL pare its debt, it is a great strategy.”
Further, without mentioning any names, he said parties have already turned up to grab the opportunity.
According to a LiveMint report, on Saturday, CDEL hired IDFC Securities to advise on strategic options including the sale of its holding in Coffee Day Global Ltd, the unit that owns India’s largest coffee chain, as well as to advise on refinancing of the group’s debt.