Exclusive-Blackstone eyes 20% stake in India Haldiram’s snack at $8 billion, sources say By Reuters
Written by Aditya Kalra
NEW DELHI (Reuters) – Blackstone (NYSE: ) has dropped plans to acquire a majority stake in Haldiram’s Indian snacks business but is now discussing a 20% stake purchase for $8 billion, which remains a strong point, sources told Reuters on Thursday.
Haldiram’s, which Euromonitor International estimates has about a 13% share of India’s $6.2-billion fast food market, has more than 150 restaurants, but many foreign investors are salivating over its popular snack business.
Reuters reported in May that a Blackstone-led consortium was looking at 75% of the business and was making a non-binding bid, but those talks have not materialized as Haldiram is no longer willing to sell a major stake, the sources said. who wish to remain anonymous as the discussions are confidential.
“Blackstone is determined to close this matter as there are still many efforts,” said another source with extensive knowledge of the matter.
There is a valuation disconnect, however, where Haldiram wants to value the snacks business at $12 billion, but Blackstone aims to close the deal at $8 billion, two sources said.
While the first two sources put the size of the stake under discussion at 20%, a third source put it at 15% to 20%, and said Blackstone remains willing to cash out of the company.
Haldiram CEO Krishan Kumar Chutani and Blackstone declined to comment.
And in the continuation of a small budget in the Indian business, two sources said, Bain Capital, Singapore regional investor Temasek and Abu Dhabi Investment Authority (ADIA), although they did not give details of their plans.
Temasek said he declined to comment on speculation, Bain declined to comment while ADIA did not respond.
Last year, Reuters reported that India’s Tata Group was in talks with Haldiram to acquire a majority stake in the entire snack and restaurant business.
At the time, the Haldirams were seeking a valuation of $10 billion, but those talks fell through, and no Tata deal is still in progress.
Haldiram’s started in 1937 with a small shop in the city of Bikaner in the western state of Rajasthan.
One of the most popular dishes is “bhujia”, a fried Indian snack made from flour, herbs and spices and sold for 10 rupees (12 US cents) at mom and pop stores.
