Blackstone could buy 20% stake in Haldiram's for $1.6 billion
Blackstone, a top global investment firm, is said to be in talks to buy a 20% stake in India's iconic snack brand, Haldiram's. The talks are based on an estimated $8 billion valuation for the company, meaning Blackstone may spend around $1.6 billion for one-fifth of Haldiram's business. Blackstone had initially planned to buy a majority stake in Haldiram's snack business, but later changed its strategy, according to Reuters.
Haldiram's holds significant market share in India
Haldiram's is a leading player in India's $6.2 billion savory snack market. The company holds nearly 13% of the market, as per data from Euromonitor International. Apart from its wide network of over 150 restaurants, Haldiram's is especially famous for its popular snack business which has drawn interest from a number of foreign investors.
Blackstone's initial bid for majority stake did not materialize
Earlier this year, Reuters reported that a Blackstone-led consortium had made a non-binding bid for a 75% stake in Haldiram's. However, those discussions didn't materialize as Haldiram's was no longer interested in selling such a big stake. "Blackstone is keen to close the transaction as a lot of effort has gone into it," one source with direct knowledge of the discussions told Reuters.
Valuation disagreement between Blackstone and Haldiram's
The ongoing negotiations between Blackstone and Haldiram's have hit a snag over differing valuations of the snack business. While Haldiram's is seeking a valuation of $12 billion, Blackstone is aiming for an $8 billion deal. The size of the stake under discussion is also variable, with one source suggesting it could be anywhere between 15% and 20%. Blackstone is keen to invest in the company.
Other potential investors eyeing Haldiram's
Apart from Blackstone, other potential investors including Bain Capital, Singapore state investor Temasek, and Abu Dhabi Investment Authority (ADIA) are also said to be interested in acquiring a minority stake in Haldiram's. However, their plans remain undisclosed. Last year, Tata Group was in talks with Haldiram's to acquire a majority stake in the entire snack and restaurant business but those discussions ended without a deal.
