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Blackstone Inc has raised its offer for Haldiram's, the Indian fast-food brand, paving the path for the private equity giant to enter India's lucrative snacks industry.
The buyout fund, as part of a consortium of investors, is expected to bid roughly Rs 40,000 crore for a 51 per cent stake in Haldiram's, according to a media report. The deal will value Haldiram at between Rs 70,000 and 78,000 crore. The final offer to the snacks maker's promoters will be based on the results of the due diligence procedure. This transaction might ultimately give the private equity firm control of Haldiram's product business, for which Blackstone will receive a permanent licence.
Some of the issues that had stalled the agreement, such as restaurant ownership and trademark licensing, are claimed to have been handled, according to the persons quoted by the report. The family will retain brand rights and operational control of the restaurants.
"The deal and valuations were getting stretched on these issues, and now that the matter has been resolved, the deal should close soon," a banker, one of the sources, said.
As part of the sale agreement, the Haldiram family would be entitled to an annual royalty from the new owners for the use of Haldiram's brand.
EY is conducting due diligence on Haldiram’s on behalf of Blackstone. The group includes Singapore's GIC and the Abu Dhabi Investment Authority. Blackstone will have the controlling share.
In answer to a question on the potential transaction, a representative for Blackstone stated that the buyout firm “had not re-bid for Haldiram's (We presented a first proposal in May 2024). The valuation mismatch prevented the conversation from moving forward.”
With the possible buyer commencing due diligence, those familiar with the process said a binding term sheet may be finalised within the next 6-8 weeks.
