Blackstone, ADIA, GIC consortium eyes controlling stake in Haldiram Snacks Food: Report

A consortium led by Blackstone, along with Abu Dhabi Investment Authority (ADIA) and GIC of Singapore have reportedly submitted a non-binding bid to acquire a controlling stake in Haldiram Snacks Food last week. Haldiram is India’s largest snack and convenience food company and if the deal goes through, it would be the largest equity buyout in India.

According to a report in The Economic Times, the consortium is keen to buy 74-76 per cent of the company, valuing the business at $8-8.5 billion (Rs 66,400-70,500 crore). ADIA and GIC are limited partners. 

Haldiram CEO KK Chutani, who was roped in for the role in May last year, told the financial daily that the company has no comments to offer. 

The transaction is conditional upon the successful merger between the Nagpur and Delhi factions as part of a plan approved by National Company Law Tribunal (NCLT).  It’s expected to get completed in the next three-four months, as the Competition Commission of India (CCI) approved it last April.  

HALDIRAM FACTIONS 

Haldiram Snacks Food is the combined packaged snacks and foods business of the Delhi and Nagpur factions of the Agarwal family. The report added that the two factions of the Haldiram family split their FMCG and restaurant business into two separate entities. 

Haldiram Foods International, led by the Nagpur faction and Haldiram Snacks, led by the Delhi faction, were merged to create a new entity, Haldiram Snacks Food. Once the merger is approved, the Delhi faction would own 55 per cent, while the Nagpur faction would own the rest. There is another faction in the east that is not involved in the merger, stated the report.

This is not the first time an attempt has been made for a stake in the company.  Several equity firms including Bain Capital, Warburg Pincus, General Atlantic have been talking to the family since 2016-17 for a minority or controlling stake. In 2018-19 the family held negotiations with Kellogg’s. PepsiCo’s Indra Nooyi had also attempted a buyout, the report added.