Haldiram Snacks Foods Private Ltd Stake Sale: Singapore-based global investment company Temasek has become the frontrunner to acquire minority stake in Haldiram Snacks Foods Private Limited. Temasek beat out other private equity suitors after intense and lengthy negotiations lasting more than 18 months. Moneycontrol has come to know this from industry sources. “After the binding bids were submitted from all parties, a term sheet has been signed between the promoters of Temasek and Haldiram Snacks,” one of the people said.
A term sheet is an agreement (usually non-binding) between two parties. It contains the main terms and conditions of the deal regarding the potential investment. This serves as a starting point for a detailed, definitive agreement at a later stage. Haldiram Snacks Foods Private Limited is a combined FMCG business of the Haldiram’s Delhi and Nagpur families.
A new entity called Haldiram Snacks Foods Private Limited (HSFPL) was created by demerging the FMCG businesses of Haldiram Snacks Private Limited (HSPL or Haldiram Delhi Group) and Haldiram Foods International Private Limited (HFIPL or Haldiram Nagpur Group). In this, the existing shareholders of HSPL and HFIPL will acquire 56 percent and 44 percent shareholding respectively.
Temasek may take less than 10 percent stake
“It is a pre-IPO deal and is expected to set the valuation benchmark,” said a second person. Temasek is considering picking up a stake of less than 10 per cent at a valuation of $10 billion to $11 billion for the entire firm. “There is a plan.” It is being said that the target is to reach the final agreement in February.
There will be no salary increase in Infosys at present, last time good news was received only in November 2023.
“Although the deal has progressed slowly, a lot of work has been done since late December. Haldiram family members are united, and the parties are hopeful that the deal will be finalized this time,” a source said. If the promoters deem fit, the option of selling additional stake in Haldiram Snacks to other private equity companies may also be considered. It remains to be seen whether that window is availed of.”
Initially there was talk of selling majority stake
Initial discussions with several bidders were related to the sale of majority or controlling stake in Haldiram Snacks. But in later rounds, the transaction boiled down to partial stake sale. The valuation for Haldiram Snacks ranges from Rs 85,700 crore to Rs 94,270 crore in Indian currency, ranging from $10 billion to $11 billion.