KKR part exits India's Coffee Day for $63m
KKR has sold the majority of its stake in Indian coffee shop and restaurant chain Coffee Day Enterprises for INR4.1 billion ($62.6 million).
The firm offloaded 12.5 million shares in open market transactions for about INR324 each, representing a premium to the closing price of INR316.90 on February 26. Part of the stake was bought by Malavika Hegde, head of hospitality at Coffee Day and wife of the company’s founder VG Siddhartha. The remaining buyers were not disclosed.
According to Coffee Day’s latest annual report, KKR held 21.8 million shares as of March 2017. The firm originally invested in the company in 2010, joining New Silk Route Partners and Standard Chartered Private Equity to commit INR9.6 billion. None of the company’s PE backers exited in its 2016 IPO, which saw Coffee Day raise INR11.5 billion after selling 35 million shares at INR328 each.
Coffee Day opened its first outlet in 1996 and now has over 1,600 locations across 241 cities and towns in India, along with more than 500 Coffee Day Xpress kiosks. It claims to have the largest network of cafes in India and also operates a delivery business, caters to the corporate segment by way of vending machines, and owns a chain of hotels under the brand The Serai.
The company reported revenue of INR983 million for the 12 months ended March 2017, up from INR605 million a year earlier. Over the same period, its net loss dropped from INR1.5 billion to INR796 million.
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