Sequoia to reap 18% return on Cafe Coffee Day sale

The private equity firm injected two tranches of $10 million in the company in 2006 and 2007.

Last month it was reported that Coffee Day's owner, V G Siddhartha, is planning to up his shareholding in Amalgamated Bean, causing speculation that one of the unit's investors - who as well as Sequoia, include Darby Private Equity, IFC and Deutsche Group - was looking to offload their stake. Siddhartha's investment would serve as replacement capital for the exiting party.

"The discussions are at advanced stages and a closure is expected shortly. Coffee Day Group is already raising resources to buy back the stake held by Sequoia," an investment banker told Business Standard.

A total of around $80 million has been invested in Amalgamated Bean so far. Financial backers hold about 30-40% of the share capital, while the rest is in the hands of the promoters.

Siddhartha is thought to be securing INR1.25 billion ($23 million) in debt to buy back Sequoia's stake. This will take the form of INR1 billion of non-convertible debentures and INR250 million in loans.

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• Topics
• South Asia
• Exits
• Consumer
• India
• Exit
• Consumer
• Darby Asia Investors
• Sequoia Capital
• IFC