Oyo and British private equity firm Apax Partners are in talks to buy stake in Cafe Coffee Day (CCD), sources told The Economic Times.

The development, the report said, comes after both Oyo and Apax signed nondisclosure agreements (NDAs) with Coffee Day Enterprises (CDEL) and have started discussions to buy the group’s coffee business. Earlier similar agreements were made by KKR, TPG Capital and Bain Capital with Coffee Day Enterprises.

“There have been five bids and all are being evaluated, but we will get some clarity only after a few days. There is a lot to consider for the company (CDEL) as all these people (potential investors) have different plans for CCD,” a source was quoted as saying in the report.

The development also makes Oyo is the only strategic investor to have made such a bid, the report said. This comes as Oyo, which had launched its coffee chain ‘The French Press,’ is looking to expand its operations across the coffee outlet segment.

The development is expected to give boost to CCDs divestment attempts. The coffee chain had closed down 500 of their outlets since April, in order to arrest the falling profitability of its coffee business.

First Published:Nov 25, 2019 11:53 AM IST