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Private equity firm Blackstone Inc. is preparing to bid Rs 40,000 crore to acquire a 51 percent stake in Haldiram. Sources have given this information to MoneyControl. There is a battle going on between big equity firms to buy India’s famous fast-food chain, Haldiram. However, now Blackstone’s grip on this deal seems to be getting stronger. Blackstone has made a better offer to buy Haldiram. This move can pave the way for a private equity firm to enter India’s snack market.
Haldiram’s valuation is expected to be between Rs 70,000 and Rs 78,000 crore
The buyout fund, as part of a consortium of investors, could bid around Rs 40,000 crore for a 51 percent stake in Haldiram, people familiar with the talks said. The deal would value Haldiram between Rs 70,000 and Rs 78,000 crore. The final offer to the snack company’s promoters will depend on the outcome of the due diligence process. The deal could give the private equity firm control of Haldiram’s products business, for which Blackstone will get a perpetual license.
Resolution of disputes related to ownership and brand licensing
Issues such as ownership of the restaurants and brand licensing were holding up the deal but have now been resolved, said the people, who asked not to be named. The family will retain control over the brand rights and operations of the restaurants. “These issues were impacting the deal and valuation, and now that the matter is on the verge of closure, the deal should close soon,” said one of the bankers cited above. This would mean that the Haldiram family would be entitled to annual royalties from the new owners for using the Haldiram brand under the terms of the sale. EY is conducting the Haldiram Purdue diligence on behalf of Blackstone. Singapore’s GIC and Abu Dhabi Investment Authority are part of the consortium. Blackstone will hold a majority stake. Responding to a question on the potential deal, a Blackstone spokesperson said the buyout firm “has not re-bid for Haldiram (we submitted an initial offer in the month of May 2024). Discussions did not move forward due to a valuation mismatch.” Haldiram CEO Krishan Kumar Chutani declined to comment on the matter. Earlier on July 8, Moneycontrol reported that Blackstone was in talks to acquire a controlling stake in Haldiram. On May 14, the Economic Times reported that Blackstone could buy 76 percent of the snack company. Haldiram has been in talks with buyers since September 2023. Due to the transaction taking longer than expected, it was also reported that Haldiram could consider listing its shares on the stock exchange. Earlier this year, Singapore’s Temasek and Bain joined the race to buy the company. A banker familiar with the matter said, “Now the talks with Blackstone have reached the final stage, which is valued at Rs 78,000 crore for 51 percent. This is the best offer received for the company.”
