Mumbai: Blackstone, an American investment management firm, publicly announced its interest to buy a 20 percent stake in India’s largest snack maker. After Halidram’s refusal of Blackstone’s initial proposal to buy a majority of the stake in the company, Blackstone has reemerged with a proposal to buy 20 percent of the company’s stake at a valuation of $8 billion, sources told Reuters on Thursday.
Euromonitor International, a market research firm based in London, estimates Halidram’s to have 13 percent share in India’s $6.2 billion snack market, making it an attractive investment option for foreign investors from all around the world.
According to Reuters reports in May, a consortium of investors led by Blackstone were keen on buying a 75 percent stake in the company, however, those plans failed to fall through as India’s largest snack company wanted to retain majority of the control over the company.
Even with a renewed offer on the table, the two sides are still negotiating the actual valuation of the snack-making company. As Blackstone remains staunch in sealing the deal at $8 billion, Halidram’s seeks to readjust the offer to the self-valuation of $12 billion.
Two other foreign firms, Bain Capital, Singapore state investor Temasek and Abu Dhabi Investment Authority (ADIA), are seeking to buy a minority stake in the company, although the exact details remain unknown.
Haldiram’s Chief Executive Krishan Kumar Chutani and Blackstone declined to comment. Temasek said it declined to comment on speculation, Bain declined to comment while ADIA did not respond.
Last year, Haldiram’s was in talks with the Tata Group to acquire a major stake in the entire businesses including snacks and restaurants at a valuation of $10 billion. However, those discussions failed to materialize into anything substantial, and the Tata Group is no longer interested in buying a stake in the company.
Halidram’s grew from a small mom and pop shop started in 1937 in the city of Bikaner in the state of Rajasthan to multi-billion dollar business in a span of few decades. The company does business in the domestic market, but has expanded to foreign markets over the years.
Blackstone has planned to buy a 20 percent stake in India’s largest snack maker, Halidram’s. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
