Blackstone Inc. has improved its offer for Haldiram’s, the renowned Indian fast-food chain, potentially paving the way for the private equity firm’s entry into India’s lucrative snacks market.
The consortium of investors led by Blackstone is expected to bid around Rs 40,000 crore for a 51 per cent stake in Haldiram’s, sources familiar with the discussions told Moneycontrol. This valuation would place Haldiram’s worth between Rs 70,000 and Rs 78,000 crore. The final terms will depend on the results of the due diligence process.
If completed, the deal would give Blackstone control over Haldiram’s product business, with the firm receiving a perpetual license.
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Sources said that previous issues holding up the deal, such as ownership of restaurants and brand licenses, appear to have been resolved. Control over the restaurants and brand rights will remain with the Haldiram family.
“The deal and valuations were getting stretched on these issues, and now, with the matter brought to a closure, the deal should close soon,” a banker, one of the people cited above, said.
Under the sale terms, the Haldiram family is expected to receive an annual royalty from the new owners for the continued use of the Haldiram’s brand.
The consortium includes Singapore’s GIC and the Abu Dhabi Investment Authority, with Blackstone holding the majority stake.
In response to inquiries about the deal, a Blackstone spokesperson said the firm “has not re-bid for Haldiram’s” and that the initial proposal from May 2024 had not progressed due to valuation differences.
Earlier this year, Singapore’s Temasek and Bain Capital joined the race to acquire the 87-year-old sweets and snacks manufacturer.
“With talks with Blackstone nearing finalisation, and at a valuation of Rs 78,000 crore for a 51 per cent stake, this represents the best offer received for the company,” a banker close to the matter said.
A binding term sheet could be finalised within the next 6-8 weeks, the news website’s sources said.
From: financialexpress
Financial News
