Blackstone Inc in advanced talks to acquire controlling stake in Haldiram's

Blackstone, together with consortium partners Abu Dhabi Investment Authority and Singapore's GIC, have been in discussions for several months with the Agrawal family members based in Delhi and Nagpur

Blackstone Inc., a major player in private equity, is in advanced negotiations with the family behind Haldiram's, an Indian savouries and snacks company, to acquire a controlling stake. The deal could value Haldiram's at up to Rs 70,000 crore, according to a report by Moneycontrol.

Blackstone, together with consortium partners Abu Dhabi Investment Authority and Singapore's GIC, which support Blackstone's global funds, have been in discussions for several months with the Agrawal family members based in Delhi and Nagpur. However, disagreements regarding the business's valuation had stalled the negotiations, but the talks have again gained momentum in the last few weeks, the report further said.

 

News reports had shown that the Blackstone consortium were looking to acquire up to 76 percent stake in the snack company.

The report quoted a source as saying, "There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 per cent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business. Some family members would like to sell only a 51 per cent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 per cent."

If the deal goes through, it will mark the largest private equity buyout in India's history. However, according to sources, discussions with Blackstone might still collapse, and the Haldiram's promoters could consider alternative routes, such as taking the company public, the report added.

The Delhi and Nagpur branches of the Agrawal family are in the process of merging their FMCG businesses, Haldiram Snacks Private Limited and Haldiram Foods International Private Limited, into a new company called Haldiram Snack Foods Private Limited.

In this new entity, the Delhi branch will hold a 56 per cent stake, while the Nagpur branch will own 44 per cent. The merger has received approval from the Competition Commission of India and is expected to be finalised in the coming months.

Possible IPO plans of Haldiram's

Last month, a report by Bloomberg stated that the Agarwal family were considering a possible initial public offering (IPO) of their business. This decision follows bids from private equity investors, which valued the company between $8 and $8.5 billion, falling short of the family's $12 billion valuation expectation. The report also mentioned that, in addition to Blackstone, Haldiram's received bids from Bain & Company and Temasek Holdings.