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Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC are part of the Blackstone consortium bidding for a 400 billion Indian rupees ($4.8 billion) majority stake in food brand Haldiram’s.
If the deal goes through, Haldiram’s valuation is expected to rise between INR 700 billion to INR 780 billion ($8.4 billion to $9.3 billion), with the Blackstone consortium acquiring a 51% stake in the company and gaining private equity firm control of Haldiram’s product business for which it will get a perpetual licence, news portal Moneycontrol reported, citing people with knowledge of the deal who could not be named.
The final offer to the promoters of the food company will be contingent on the outcome of the due diligence process, the report said.
EY is conducting due diligence on Haldiram’s on behalf of Blackstone.
In May, India’s Economic Times first reported on the deal talks with the Blackstone consortium submitting a non-binding bid for a 75% stake.
Last year, Reuters reported India’s Tata Group was in talks with Haldiram’s to acquire a majority stake in the entire snacks and restaurants business. Haldiram’s at the time was seeking a valuation of $10 billion.
Founded in 1937, Haldiram’s has grown from a tiny shop in the Indian state of Rajasthan to a household name through its popular snacks business and sweets, which is now exported to 80 countries globally. The company also runs more than 150 restaurants.
(Writing by Bindu Rai, editing by Seban Scaria)