Haldiram’s to sell 10% stake to Temasek in deal valuing firm at $10 bn

Haldiram Snacks Food Pvt. Ltd has agreed to sell a stake in the snacking and sweets firm to Singapore-based global investment firm Temasek.

Mint first reported that Temasek will buy a nearly 10% stake in Haldiram’s for about Rs8,500 crore ($1 billion), valuing the firm at Rs85,000 crore ($10 billion).

Once complete, this will be the largest private equity deal in India’s consumer sector.

The development comes after months of discussions between the Agarwal family and Temasek.

While Temasek expressed interest last year, competitors Bain Capital and Blackstone were also involved at the time.

All three firms initially sought a controlling stake of at least 51%, but concerns over valuation led to the deal being reduced to around 10%, the Financial Express reported.

As part of the deal, Temasek will gain a seat on Haldiram’s board and may consider increasing its stake in the future, the business daily reported.

Haldiram’s plans to grow the company both domestically and internationally following the deal.

The transaction, which was facilitated by PwC’s Investment Banking team as the exclusive financial advisor and Khaitan and Co. as the legal advisor, is pending customary regulatory approvals and is expected to conclude soon.

“We are thrilled to welcome Temasek as an investor and partner in Haldirams. We look forward to working with them to harness the value they bring from their experience in the consumer space to accelerate our growth and strengthen our ability to meet evolving consumer demands,” a Haldiram’s spokesperson said in a statement.

Founded in 1937 in Rajasthan’s Bikaner, Haldiram’s grew to become a leading manufacturer of snacks, sweets, and ready-to-eat products. The company has built a strong presence both in India and abroad.