Global buyout major KKR has said it is “deeply saddened” by the disappearance of VG Siddhartha, the promoter of its investee company the coffee chain Cafe Coffee Day since Monday evening.
In a purported letter sent to the company board and the employees of the coffee chain he founded, Siddhartha had on July 27 said he was under pressure from one of the private equity partners to buy back shares.
KKR in a statement Tuesday said it had invested in the popular coffee chain nine years ago and part-exited the investment last year.
The fund statement added that it continues to hold about 6 percent in the company now down from 10.3 percent earlier.
“We are deeply saddened by the developments and our thoughts are with his family at this time. We believe in VG Siddhartha and had invested in the company about nine years ago,” KKR said in a statement.
It can be noted that generally, private equity funds have a shorter investment horizon of say one to seven years wherein they help an invested company grow and exit.
The 57-year-old Siddhartha, the son-in-law of former Union minister SM Krishna, has also blamed pressure from lenders and the tax department in the letter and has even named a director-level income tax officer in his apparent suicide note.
Meanwhile, mortgage major HDFC denied it has any exposure to any of the companies associated with Siddhartha. “HDFC had disbursed lease rental discounting loans to Tanglin Developments (CCD) for its project Global Village Tech Park in Bangalore. The entire loan was repaid in January 2019 and has no exposure to the Coffee Day Enterprises group as on date,” an HDFC spokesperson said.
Source: Mint