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Temasek has emerged as the frontrunner to acquire a minority stake in Haldiram Snacks Foods Private Ltd
Haldirams
After more than 18 months of intense negotiations, Singapore-based global investment firm Temasek has emerged as the frontrunner to acquire a minority stake in Haldiram Snacks Foods Private Ltd, the combined FMCG business of the Delhi and Nagpur families behind the Indian snacks giant, Haldiram, multiple industry sources told Moneycontrol.
“Following the submission of binding bids from all parties, a term sheet has been signed between Temasek and the promoters of Haldiram Snacks,” one source informed Moneycontrol.
A term sheet is a preliminary agreement (usually non-binding) outlining the key terms and conditions of a potential deal. It marks the starting point for a more detailed, definitive agreement at a later stage.
“This is a pre-IPO deal and is expected to set a valuation benchmark. Temasek is looking to acquire a stake of less than 10 percent, with the entire firm valued at between $10 billion and $11 billion,” another source said.
Earlier reports suggested that Haldiram may be looking to sell up to 20 percent of its stake as part of efforts to unlock value in the company. Other private equity players in the final stage of the transaction include Blackstone and Alpha Wave Global.
Initial discussions with several bidders were focused on the sale of a majority or controlling stake in Haldiram Snacks. However, the focus later shifted to a partial stake sale.
The valuation of $10 billion to $11 billion for Haldiram Snacks equates to a range of Rs 85,700 crore to Rs 94,270 crore.
Earlier, a demerger of the FMCG businesses of Haldiram Snacks Private Ltd (Haldiram Delhi group) and Haldiram Foods International Pvt Ltd (Haldiram Nagpur group) led to the creation of a new entity, Haldiram Snacks Foods Private Ltd (HSFPL). Existing shareholders of HSPL and HFIPL now hold 56% and 44% stakes, respectively.
According to a February 16 report by Crisil Ratings, Haldiram’s product portfolio is diverse, including snacks, namkeen, sweets, ready-to-eat foods, frozen foods, biscuits, non-carbonated ready-to-drink beverages, pasta, and more. The group has a strong presence across India and exports to several international markets, including the USA and Europe.
Meanwhile, shares of Haldiram’s smaller listed peer, Bikaji Foods International, have surged by over 25% in the last year, with a market capitalization of Rs 18,230 crore as of January 6.
