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Temasek is reportedly looking to acquire less than 10% stake, valuing the entire firm between $10 billion to $11 billion (approximately Rs 85,700 crore to Rs 94,270 crore).
The deets: after more than 18 months of intense negotiations, Temasek and the promoters of Haldiram Snacks have signed a term sheet, marking a significant step forward in the deal process.
Final agreements are expected to be reached in February.
While the current focus is on Temasek's stake acquisition, sources suggest that Haldiram's promoters may consider selling additional stakes to other private equity players if deemed appropriate.
Context
- The transaction initially involved discussions about a majority stake sale but later shifted to a part stake sale.
- Other bidders in the final stages included Blackstone and Alpha Wave Global.
- Earlier reports suggested Haldiram might sell up to 20% stake to unlock value in the firm.
Context: The Haldiram Group boasts a diversified product profile, including snacks, namkeen, sweets, ready-to-eat foods, frozen foods, biscuits, non-carbonated beverages, and pasta.
It has a strong presence in India and exports to various countries, including the United States and Europe.
In related news, shares of Haldiram's smaller listed peer, Bikaji Foods International, have seen a rise of over 25% in the past year, with its market cap standing at Rs 18,230 crores as of January 6.
As negotiations continue, the potential deal between Temasek and Haldiram Snacks could mark a significant milestone in the Indian FMCG sector.
