Oyo, Apax Partners in talks to buy stake in CCD

An online hospitality company OYO and British private equity firm Apax Partners are in talks to buy stake in Cafe Coffee Day (CCD), according to an economic times report. According to reports, the two signed confidentiality agreements. This development comes after it was reported after talks by KKR, TPG Capital and Bain Capital to buy a stake in the main coffee shop.

Sources told that the bids were evaluated, and the board began negotiations with two of the five bids. "There were five offers and they all are evaluated, but we will get some clarity only after a few days," the source said.

OYO is not new to space and has already opened two coffee shops called French Press. It ventured into the coffee business after venturing into two cloud kitchens: Adraq and O'Biryani. The report pointed out that Oyo is looking to expand its coffee business and that the output of CCD could give it a boost.

There were talks to sell CCD even before the death of the brand's founder, VG Siddhartha. At the time of Siddhartha's death in July, Coffee Day Enterprises, the dominant company of Coffee Day, had a total debt of about Rs. 6,550 crore as of March 2019, which he was trying to reduce.




Image Source: The Economic Times