Lucknow Press
Haldiram’s, famous for bringing the spicy taste of Aloo Bhujia to every home, is now going to be sold. Yes, the world’s largest private equity fund Blackstone Inc has increased its offer for Indian fast food chain Haldiram’s. If this deal happens, it will be easier for the private equity firm to enter the Indian snacks market. Money Control’s report claims that the buyout fund as a group of investors can bid around Rs 40,000 crore for 51% stake in Haldiram.
Haldiram’s valuation is between Rs 70,000 and Rs 78,000 crore
With this deal, Haldiram’s valuation will be between Rs 70,000 and Rs 78,000 crore. The final offer to the promoters of the snacks company will depend on the outcome of the due diligence process. With this deal, the private equity firm can get control over Haldiram’s product business. For this, Blackstone will get a permanent license. Money Control’s report said that some issues that were hindering the deal, such as restaurant ownership and brand license, have been resolved. The family will have control over the brand rights and operation of the restaurant.
The deal is expected to be closed soon
Based on the progress made so far, the deal is expected to close soon. Based on the terms, it is expected to be decided that the Haldiram family will be entitled to receive annual royalties from the new owners for using the Haldiram brand as part of the terms of the sale. EY is investigating Haldiram on behalf of Blackstone. Singapore’s GIC and Abu Dhabi Investment Authority are part of this group. Blackstone will have the largest stake.
The first proposal was made in May 2024.
A spokesperson for Blackstone said that they have not bid again for Haldiram. He said that the first proposal was made in May 2024. But the price could not be agreed upon, so the talks could not proceed further. On the other hand, Haldiram CEO Krishna Kumar Chutani refused to say anything on this whole matter. Earlier also, media reports had claimed that Blackstone is in talks to buy a controlling stake in Haldiram. It was also claimed in a news that Blackstone is preparing to buy 76 percent stake in Haldiram.
Haldiram may get listed in the stock market
It is being told that Haldiram has been in talks with buyers since September 2023. The reason for the transaction taking longer than expected was also told that Haldiram may consider listing its shares on the stock exchange. Earlier in the year, Singapore’s Temasek and Bain joined the race to buy the 87-year-old sweets and snacks manufacturer. A banker associated with the matter said that the talks with Blackstone have reached the final stage. At a valuation of Rs 78,000 crore for 51 percent, this is the best offer for the company. A final agreement related to this deal is expected in the next two months.
