Siddhartha was eager to sell his Cafe Coffee Day stake to Coca-Cola?

coastaldigest.com web desk
July 30, 2019

Newsroom, Jul 30: Cafe Coffee Day founder V G Siddhartha, who was battling financial woes, was reportedly in talks with global soft drinks giant Coca-Cola to sell his stake in the coffee chain.

According to sources, Siddhartha was seeking a valuation of between Rs 8,000 crore and Rs 10,000 crore from Coca-Cola for the coffee chain he set up over two decades ago, while also aiming to retain a controlling stake in the business.

“The promoters are asking for a valuation of between four to five times of sales (in the coffee business) on the back of some valuation trends in the industry both companies are privy to,” a prominent newspaper quoted an unnamed source in the know of the matter.

The group’s coffee business expects to close the year ending March 2020 with sales of about Rs 2,250 crore, according to a senior company executive. The business, which includes some exports of the bean, had revenue of Rs 1,777 crore and Rs 1,814 crore in fiscal year 2018 and 2019, respectively, according to regulatory filings. CCD, set up in August 1996, has grown to include 1,750 stores across India with 60,000 vending machines. It also has outlets across Europe as well as in Malaysia, Nepal and Egypt.

The promoter group holds a 53.93 per cent of the stake in the Coffee Day Enterprises. Of this, Siddhartha owns a 32.75 per cent stake, while his wife and former Karnataka chief minister SM Krishna’s daughter Malavika Hegde held a 4.05 per cent stake. The remainder was held by the couple’s privately-owned entities -- Devadarshini Info Technologies Pvt Ltd, Coffee Day Consolidations Private Limited, Gonibedu Coffee Estates Pvt Ltd and Sivan Securities Private Limited.

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News Network
January 2,2020

Bengaluru, Jan 2: The Congress leadership in Delhi is expected to start the process of selecting a new party chief for Karnataka next week. There are strong indications the race has narrowed to DK Shivakumar and MB Patil.

Party insiders said the leadership almost finalised Shivakumar’s name as the president of Karnataka Pradesh Congress Committee (KPCC), but the decision was put on hold after requests by some senior members.

“It’s not that we are against Shivakumar. We think the party should have a Lingayat at the helm since community strongman and chief minister BS Yediyurappa is at the fag end of his long political career. There’s an opportunity here for a Congressman to occupy that space,” said a senior Congress politician, who didn’t want to be named.

That’s where the candidacy of Patil, a Lingayat, scores high.

The party, however, doesn’t want to compromise on quality and wants an efficient KPCC president who can unite two rival factions within the party, one led by Siddaramaiah and another by former union minister KH Muniyappa.

The need to pick a new state president arose after Dinesh Gundurao resigned from the post last month, taking moral responsibility for Congress’s poor showing in the byelections. Siddaramaiah also stood down as Congress party legislature leader.

The insiders said the new KPCC chief could be announced after January 16. The party might also appoint two working presidents and a new legislature party leader, who will automatically become the opposition’s voice in the assembly.

For the latter position, the name of senior Dalit politician and former deputy chief minister G Parameshwara is doing the rounds. But the party, the sources said, could still ask Siddaramaiah to reconsider his decision and stay on.

Many Congress members had raised questions over his stewardship after the bypoll disappointment. They said on his watch, the party had also fared badly in the assembly and Lok Sabha elections, demanding that he be held accountable.

Siddaramaiah is expected to visit Delhi next week to discuss the leadership issue with party boss Sonia Gandhi. Some other senior Congress members, including BK Hariprasad, are also likely to meet her.

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News Network
April 5,2020

Bengaluru, Apr 5: Opening of Karnataka's borders to Kerala at this point in time will be like "embracing death," chief minister B S Yediyurappa said on Saturday making clear his government's stand not opening the state border.

The chief minister repeatedly said that for his government interest of the people of the state was supreme.

Yediyurappa made his stand clear in a letter to former prime minister and JD(S) patriarch H D Deve Gowda.

Gowda had recently written to the chief minister on March 31 seeking relaxation of the border restrictions on "humanitarian" grounds.

He had also written to Kerala chief minister Pinarayi Vijayan expressing his anguish against Karnataka authorities for imposing restriction and promising to raise the matter with prime minister Narendra Modi.

Stating the decision to close the border was not sudden, Yediyurappa said, it was a conscious decision after analysing the health situation in the area following the spread of COVID-19.

The chief minister cited the Indian Medical Association, Mangaluru branch data regarding the spread of Covid-19 in Kasargod of Kerala and surrounding areas which was alarming.

Noting that the region has nearly 106 positive coronaviruscases, he said, "this is the region with most number of infections in the country."

If this restriction is removed, it puts the health of the people of Karnataka in to risk and create a situation of "embracing death", so we will not be able to open the border, Yediyurappa said.

He also clarified that there was no prejudice behind his government's decision, and the interest of the people of the state was of utmost importance.

"...There is also no political maliciousness. We want to have good and brotherly relationship with neighbouring states," he said, adding that opening the border will open a pandora's box that will be disastrous for the state.

Yediyurappa also thanked opposition parties for their support to his government in its fight against COVID-19.

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News Network
August 6,2020

Bengaluru, Aug 5: A red alert has been issued in several districts in Karnataka due to heavy rainfall in the state since last two-three days, the India Meteorological Department said on Wednesday.

"Red alert has been announced in Udupi, Dakshina Kannada, Uttara Kannada, Chickamagalur, Shivamogga, Kodagu and Hassan, due to heavy rainfall in the region from last two-three days," CS Patil, Director, India Meteorological Department (IMD) Bengaluru said.

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