Temasek-Bain consortium in race to buy Haldiram

16 May 2024 , 02:44 PM

In an effort to challenge the Blackstone-led consortium for a majority share in Haldiram Snacks Food Pvt Ltd, Bain Capital has partnered with Temasek of Singapore. This competition between global buyout firms could result in the largest private equity transaction in India to date.

According to news reports, after first speaking with the 87-year-old brand’s founding family individually, the Bain and Temasek combination made a non-binding offer late last week that valued India’s largest snack and convenience foods company at $8–8.5 billion (₹66,400–70,500 Crore).

In an attempt to purchase up to 76% of the business, the largest private equity firm in the world joined up with the Abu Dhabi Investment Authority (ADIA) and the Singapore sovereign wealth fund GIC.

ADIA, GIC, and Temasek are limited partners in Bain’s global funds. In November of last year, Bain successfully closed the fifth and largest pan-Asia private equity fund in the region, totaling $7.1 billion, surpassing its target by 40%.

Over the last seven months, while the group was preparing a pan-India reorganization plan, Bain was sporadically involved in bilateral conversations to purchase into the company with the Delhi and Nagpur factions of the Agarwal family that oversees Haldiram.

Talks over a minority stake were more concentrated toward the end of 2023 and included factory tours and managerial meetings. However, after splitting off its restaurant chain into a separate firm that it will keep, and merging its snack business, the founding family is now willing to sell up the majority of the business. The Agarwal clan’s future generation wishes to follow other interests.

The goal of the suitors and the Haldiram family is to schedule the deal to close during the three- to four-month period following the merger’s expected approval by the National Company Law Tribunal (NCLT). The merger plan was approved by the Competition Commission of India (CCI) in April of last year.

Blackstone and Bain may both build larger consortiums by enlisting the help of other LPs and partners, contingent on the ultimate stake on offer and pricing. ”

Bain and Temasek are collaborating on an Indian venture for the first time. In the past, GIC and Bain have frequently collaborated on coinvestments.

Last summer, Haldiram named Chutani, a former CEO of Dabur International, as its CEO, placing a professional in charge for the first time.

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