INSUBCONTINENT EXCLUSIVE:
Coffee Day has about 1,700 outlets, ten times more than what Starbucks Corp
runs in India.ITC Ltd., Asia's largest cigarette maker by market value, is considering a bid to buy a stake in Coffee Day Enterprises Ltd
as it seeks to diversify away from tobacco products, according to people familiar with the matter.The maker of Classic and Gold Flake
cigarettes has been given access to Coffee Day's assets and financial for due diligence, said the people, who asked not to be identified
as the discussions are private
ITC could be vying with Coca-Cola Co., which has evaluated India's biggest cafe chain but hasn't made a formal offer, said one of the
people.A successful bid will help ITC further diversify its business to reduce dependence on cigarettes as India raises taxes on tobacco and
restricts smoking in public places
Coffee Day is under pressure to pare borrowings after its founder VG Siddhartha took his own life as debt strains began to emerge in his
companies.Deliberations are at preliminary stage and may not lead to a formal offer, according to the people
ITC received an inquiry from an intermediary on Coffee Day and there has been no progress, its spokesman said in response to Bloomberg query
Coffee Day declined to comment.Coffee Day has about 1,700 outlets, ten times more than what Starbucks Corp
runs in the world's second most populated country, according to the National Restaurant Association of India
A unit of private equity firm KKR - Co
owns 6.07 per cent of the company
Standard Chartered Private Equity holds 5.7 per cent, while Nandan Nilekani, co-founder of Infosys Ltd., has a 2.69 per cent stake.Get
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