Blackstone drops majority stake plan, eyes 20% share in Haldiram's at $8 billion valuation: Report

Blackstone has dropped plans to acquire a majority stake in the snacks business of Haldiram’s instead it is now discussing purchase of a 20 percent stake at a valuation of $8 billion, which is still a sticking point, Reuters reported citing sources. 

There is a disconnect over valuation, though, with Haldiram’s wanting to value the snacks business at $12 billion, but Blackstone aiming to seal the deal at $8 billion, the report added.

Business Today was unable to verify the development independently. 

Earlier, reports said that the New York-based alternative investment firm is looking to take a controlling stake in the snacks maker at a valuation of up to Rs 70,000 crore. 

Blackstone and its partners, Abu Dhabi Investment Authority and Singapore’s GIC, which backs Blackstone’s global funds, have been in talks with the Haldiram Agarwal family for the last few months for a stake sale, as per reports. Blackstone was reportedly in talks to acquire up to a 76 per cent shareholding in the snack maker. 

The Agarwal family is considering taking the company public, valuing it at $8-8.5 billion from private investors. Along with Blackstone, Haldiram has also received bids from Bain & Co. and Temasek Holdings, according to the report. 

The deal for Haldiram’s came after the merger of Haldiram’s Nagpur and Delhi factions, which was approved by the Competition Commission of India in 2023. 

Haldiram’s sells namkeen (salted) snacks, sweets, ready-to-eat food, pre-mix foods, frozen foods, etc., in India as well as exports to countries of Europe and the United States. 

Haldiram’s operating income increased 34 percent to Rs 1,812 crore in the financial year 2023 from Rs 1,350 crore in 2022, increasing the brand’s strength and fuelling its sales growth, according to an ICRA report released in December 2023.