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Blackstone's bid for a 75% stake stalled as Haldiram's lost interest in a majority sale.

Blackstone eyes 20% stake in Haldiram's snacks business amid valuation clash

| @indiablooms | Nov 15, 2024, at 04:39 am

Mumbai: Blackstone has abandoned plans to acquire a majority stake in India’s Haldiram's snacks business and is now negotiating for a 20% stake at a valuation of $8 billion, which remains a point of contention, Reuters reported on Thursday.

Haldiram's, which holds nearly a 13% share of India’s $6.2-billion savoury snacks market according to Euromonitor International, also operates over 150 restaurants.

However, foreign investors are primarily interested in its popular snacks segment.

In May, Reuters reported that a consortium led by Blackstone was pursuing a 75% stake through a non-binding bid, but talks stalled as Haldiram's showed less interest in selling a majority stake, said sources who wished to remain anonymous due to the private nature of the discussions.

"Blackstone is eager to finalize the transaction given the significant effort invested," Reuters reported, citing sources.

However, valuation differences persist as Haldiram's is seeking a valuation of $12 billion, while Blackstone aims to secure the deal at $8 billion, the report said.

While two sources placed the stake under discussion at 20%, a third suggested a range of 15% to 20%, adding that Blackstone remains interested in investing in the company.

Haldiram's CEO Krishan Kumar Chutani and Blackstone declined to comment on the matter.

Founded in 1937 as a small shop in Bikaner, Rajasthan, Haldiram’s is best known for its "bhujia," a crispy, fried snack made from flour, herbs, and spices, available in small mom-and-pop stores for as little as 10 rupees.

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