Talks with Coca Cola may be renewed by Café Coffee Day following demise of the promoter VG Siddhartha, reports Economic Times. The company is trying to pare down debt and other group companies, like Sical Logistics and software technology park, Global Village Tech Park, in Bengaluru, are all under different stages of negotiations for sale and the proceeds being used to clear off the debts the companies owe. The levels of debts may come down to manageable levels.

Taking over Coffee Day makes sense to Coca Cola. The company is passing through a low as far as its aerated beverages businesses is concerned. Taking over CCD will immediately give it ownership of 1,700 outlets across the country. There are some outlets outside of India as well.

This is not the first time Coca Cola is trying to take over CCD. Earlier, VG Siddhartha had held negotiations with the US giant for a possible investment but not a buyout. The talks had fallen through since Siddhartha wanted a valuation of his company placed at around Rs 10,000 crore, which possibly Coca Cola had not agreed to then.

It is not clear what kind of valuation is being contemplated now. The Blackstone Group one of world’s largest alternate asset managers has been roped in to help with paring the debt of Sical Logistics, a subsidiary. That deal is worth $3,000. There may be other ways to raise funds through other disinvestments as well.

CDEL has officially not confirmed the development with regard to the talks with Coca Cola but it has conveyed that when they conclude the deal on Global Village, the company’s debt will be down to Rs 1,000 crore.

When the current financial year ends next March, Café Coffee Day is said to clock a turnover of around Rs 2,250 crore, from its 1750 outlets in the country. CCD has 60,000 employees. There are some outlets in countries like Austria, Czech Republic, Malaysia, Nepal and Egypt.