Haldiram Snacks Food has reportedly received an offer for a controlling stake in the snack company. The firm has received a non-binding bid for a majority stake from a consortium led by Blackstone, media reports said.
This consortium includes Abu Dhabi Investment Authority (ADIA) and GIC of Singapore, reported the Economic Times. The report said that the group plans to purchase a majority stake in the snack and convenience food firm.
If the deal is completed, this would mark the largest equity buyout in India, the report noted. According to the deal, the consortium is looking to acquire a 74 to 76 per cent stake in Haldiram Snacks Food and has valued the business at $8-8.5 billion or Rs 66,400-70,500 crore.
The report added that ADIA and GIC are limited partners in the consortium. The firm’s CEO, KK Chutani, who took over the role last year in May, denied any comments from the company.
The deal, however, remains conditional on the merger between the Nagpur and Delhi businesses, that has been approved earlier by the National Company Law Tribunal (NCLT) and by the Competition Commission of India (CCI) in last April. The merger is expected to be finalised in the next three-four months.
Notably, Haldiram Snacks Food is a combination of packaged snacks and food businesses based in Delhi and Nagpur. The whole business is controlled by the Agarwal family.
The report noted that both factions of the Haldiram family divided their FMCG and restaurant business into two separate entities. While the Haldiram Foods International faction is led by the Nagpur entity, the Haldiram Snacks faction is controlled by the Delhi unit.
However, the suggested merger to create a new entity is in the works, wherein, Haldiram Snacks Food will be formed after consolidating both businesses.
The new entity will see the Delhi unit control a majority 55 per cent, while the remaining will be owned by the Nagpur faction.
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