Blackstone Inc., a significant participant in non-public fairness, is in superior negotiations with the household behind Haldiram’s, an Indian savouries and snacks firm, to amass a controlling stake. The deal may worth Haldiram’s at as much as Rs 70,000 crore, based on a report by Moneycontrol.
Blackstone, along with consortium companions Abu Dhabi Funding Authority and Singapore’s GIC, which assist Blackstone’s international funds, have been in discussions for a number of months with the Agrawal members of the family primarily based in Delhi and Nagpur. Nonetheless, disagreements relating to the enterprise’s valuation had stalled the negotiations, however the talks have once more gained momentum in the previous couple of weeks, the report additional mentioned.
Information stories had proven that the Blackstone consortium have been trying to purchase as much as 76 p.c stake within the snack firm.
The report quoted a supply as saying, “There was loads of forwards and backwards with the members of the family over the valuation of the enterprise. Additionally, the household is just not freely giving a 76 per cent controlling stake, which the non-public fairness traders needed, and need to retain a bigger share of the enterprise. Some members of the family wish to promote solely a 51 per cent stake however the present discussions with Blackstone are more likely to see a stake sale of nearer to 74 per cent.”
If the deal goes via, it can mark the biggest non-public fairness buyout in India’s historical past. Nonetheless, based on sources, discussions with Blackstone may nonetheless collapse, and the Haldiram’s promoters may take into account different routes, equivalent to taking the corporate public, the report added.
The Delhi and Nagpur branches of the Agrawal household are within the means of merging their FMCG companies, Haldiram Snacks Non-public Restricted and Haldiram Meals Worldwide Non-public Restricted, into a brand new firm known as Haldiram Snack Meals Non-public Restricted.
On this new entity, the Delhi department will maintain a 56 per cent stake, whereas the Nagpur department will personal 44 per cent. The merger has acquired approval from the Competitors Fee of India and is predicted to be finalised within the coming months.
Potential IPO plans of Haldiram’s
Final month, a report by Bloomberg acknowledged that the Agarwal household have been contemplating a attainable preliminary public providing (IPO) of their enterprise. This choice follows bids from non-public fairness traders, which valued the corporate between $8 and $8.5 billion, falling in need of the household’s $12 billion valuation expectation. The report additionally talked about that, along with Blackstone, Haldiram’s acquired bids from Bain & Firm and Temasek Holdings.
First Revealed: Jul 08 2024 | 3:03 PM IST
