Private equity firms could purchase a sizable portion of Haldiram...
Private equity firm Blackstone may buy a large stake in Haldiram, the country's largest FMCG company associated with salty bhujia and snacks. If the deal for this purchase is done, Haldiram can get a valuation of Rs 70,000 crore. Blackstone and its consortium partners Abu Dhabi Investment Authority and singapore GIC have been talking to members of Haldiram's promoters Agarwal family for a long time about this deal in both delhi and Nagpur. Earlier, the talks got stuck due to the expensive valuation, but in the last few weeks, talks have started again regarding the deal.
This news has come to light quoting Moneycontrol. According to the report, Blackstone's consortium is planning to buy 76 percent stake in Haldiram. The report quoted sources as saying that several rounds of talks have been held with the members of the Agarwal family regarding the valuation of Haldiram. The Agarwal family does not want to sell 76 percent controlling stake in Haldiram to the Blackstone consortium. Because the family members want to retain their majority stake in the business. Some family members want to sell only 51 percent stake, but in the current round of talks, there may be an agreement to sell 74 percent stake.
If Haldiram's deal with Blackstone is done, it will be the largest private equity deal in the history of India. However, the report says that the talks with Blackstone may also break down because Haldiram's promoters may also consider selling stake through IPO. The Agarwal families based in delhi and nagpur are working on the process of merging their FMCG business. Haldiram Snacks Private Limited and Haldiram Foods international Private Limited are being merged into Haldiram Snack Food Private Limited. The delhi branch will have a 56 percent stake in the new company while the nagpur branch will have a 44 percent stake. The merger has been approved by the Competition Commission of india and this process will be completed soon.
Last month, Bloomberg reported that the Agarwal family is also considering bringing an IPO for its business. The promoters want a valuation of $12 billion but the private equity partners are not ready to give a valuation of more than $8 to $8.5 billion.
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