Blackstone Eyes Controlling Stake in Haldiram's According to media reports, the Blackstone partnership was hoping to buy up to 76 percent of the snack company.
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Major private equity player Blackstone Inc. is in advanced talks to buy a majority ownership in the Indian savoury and snack company Haldiram's, with its founder family. According to multiple media sources, Haldiram's could be valued at as much as INR 70,000 crore as a result of the deal.
Blackstone has been in talks with the Delhi- and Nagpur-based members of the Agrawal family for several months, in conjunction with consortium partners Abu Dhabi Investment Authority and Singapore's GIC, which support Blackstone's worldwide funds. Negotiations had stagnated due to differences over the company's valuation, but in recent weeks, the report added, the talks have picked back up steam.
According to news sources, the Blackstone partnership was hoping to buy up to 76 percent of the snack company.
The report quoted a source as saying, "There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 percent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business. Some family members would like to sell only a 51 percent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 percent."
In India's history, if the deal closes, it will be the biggest takeover by private equity. However, discussions with Blackstone might still collapse, and the Haldiram's promoters could consider alternative routes, such as taking the company public, the report added.
The Delhi and Nagpur branches of the Agrawal family are in the process of merging their FMCG businesses, Haldiram Snacks Private Limited and Haldiram Foods International Private Limited, into a new company called Haldiram Snack Foods Private Limited.
The Delhi branch will own a 56 percent stake in this new company, while the Nagpur branch would own 44 percent. The Competition Commission of India has approved the merger, and it is anticipated to be finalised in the upcoming months.
