Blackstone may bid over ₹70,000cr for majority stake in Haldiram's
What's the story
Blackstone Inc, a prominent private equity firm, wants to acquire a 51% stake in Haldiram's, the famous Indian snack maker and fast-food chain.
The firm is part of an investment consortium that is projected to bid between ₹70,000-78,000 crore for the stake.
The final offer will hinge on the results of the due diligence process, currently being carried out by EY on behalf of Blackstone.
Deal details
Deal could grant Blackstone control over Haldiram's products
The deal could potentially give Blackstone control over Haldiram's product business, with a perpetual license.
The previously contentious issues such as ownership of restaurants and brand license, have reportedly been resolved.
The brand rights and control over restaurant operations will remain with the Haldiram family, ensuring continuity in the business operations.
Progress
Deal closure expected soon
A banker familiar with the negotiations stated that "the deal and valuations were getting stretched on these issues, and now, with the matter brought to a closure, the deal should close soon."
As part of the sale terms, the Haldiram family will receive an annual royalty from the new owners for using the Haldiram's brand.
This arrangement ensures that while ownership may change hands, brand recognition remains intact.
Consortium composition
Consortium includes GIC, Abu Dhabi Investment Authority
The consortium bidding for Haldiram's includes Singapore's GIC and the Abu Dhabi Investment Authority, with Blackstone holding the majority stake.
In response to a query about this potential deal, a spokesperson for Blackstone clarified that they "have not re-bid for Haldiram's (We had submitted an initial proposal in May 2024). The discussion did not move forward because of the valuation mismatch."
Krishan Kumar Chutani, CEO of Haldiram's declined to comment on this matter.
Acquisition history
Haldiram's in talks with potential buyers since 2023
Haldiram's has been in discussions with potential buyers since September 2023.
Earlier this year, Singapore's Temasek and Bain also showed interest in acquiring the 87-year-old sweets and snacks manufacturer.
However, a banker aware of these negotiations stated that "now the talks with Blackstone have reached finality, and at ₹77,000 crore for 51% stake, this is the best offer received for the company."