Kolkata: City-based conglomerate ITC has poured cold water on the initial euphoria in the market that it is planning to acquire a stake in Cafe Coffee Day.
According to a report in Economic Times on Wednesday evening, ITC said it was not keen to take over the company’s debt. Besides, the ITC business model was not in sync with Cafe Coffee Day.
“ITC receives enquiries from market participants on an ongoing basis, which are suitably evaluated. One such enquiry was received from an intermediary on Cafe Coffee Day. However, no progress was made on the matter,” ET quoted a company spokesperson as saying.
Earlier in the day, there were media reports that ITC, along with Cola-Cola had evinced interest to acquire stake in the company. The market capitalisation of the firm currently stands at Rs 1630.86 crore compared to Rs 4,067.65 crore on July 29.
An ITC executive told the business paper that ITC has launched coffee cafes under the Sunbean gourmet brand name, and those are much more premium than Cafe Coffee Day and hence there is no fit. These cafes can be found in luxury hotels and select malls.