Temasek of Singapore to Acquire Minority Stake in Haldiram Snacks

Synopsis

Temasek, the Singapore-based investment firm, has confirmed its agreement to acquire a stake in Haldiram Snacks Food Private Limited. The deal is pending regulatory approvals and is expected to be finalized soon, reflecting the growing interest in India's consumer market.

Key Takeaways

Temasek is acquiring a 10% stake in Haldiram.
The transaction is pending regulatory approvals.
This is the largest private equity consumer deal in India.
Funds will be used for business expansion.
Haldiram is a major player in the packaged food sector.

New Delhi, March 30 (NationPress) The Singapore-based investment firm Temasek has officially announced on Sunday its agreement to purchase a stake in Haldiram Snacks Food Private Limited from its current shareholders.

The two companies revealed the agreement through a press release. At this stage, the transaction is pending regulatory approvals and is anticipated to be completed shortly.

Although the precise financial terms of the deal remain undisclosed, reports indicate that Temasek aims to acquire approximately a 10 percent stake in Haldiram via its subsidiary, Jongsong Investments Pte.

In March, the firm applied for approval from the Competition Commission of India (CCI) to proceed with this investment.

"This transaction stands out as not only the largest private equity consumer deal in India but also highlights the ongoing advancement of domestic enterprises that enhance India’s presence on the global platform," stated Sanjeev Krishan, Chairperson of PwC India, which served as the exclusive financial advisor. The legal aspects were advised by the law firm Khaitan & Co.

The funds from this transaction are intended to facilitate the expansion of Haldiram’s business, both domestically and internationally.

A representative from Haldiram expressed, "We are excited to welcome Temasek as an investor and partner. We look forward to leveraging their expertise in the consumer sector to boost our growth and adapt to changing consumer preferences."

Founded in 1937, Haldiram is one of India’s largest packaged food producers, renowned for its diverse array of snacks, sweets, and ready-to-eat items.

The company enjoys a robust presence both in India and on international markets. As of March 31, 2024, Temasek manages a net portfolio valued at $288 billion and has been actively investing in India’s consumer and food industries.

This investment coincides with reports that Blackstone Inc., in collaboration with Singapore’s GIC and the Abu Dhabi Investment Authority, is in negotiations to acquire a separate 20 percent stake in Haldiram.

According to media sources, this consortium is the preferred bidder for the stake and is aiming to invest around $1.6 billion, which would value the company at approximately $8 billion.