Reports highlight that the agreement values the company at around USD 10 billion
Aimed at continuing its expansion plans in the Indian and international market, Haldiram Snacks Food (Haldiram’s) has entered into an agreement with global investment firm Temasek to sell an equity stake held by existing shareholders, as per the media reports which cited PwC.
While the financial details are yet to be released, the media reports stated that the agreement concerns selling around 10 per cent stake in the Indian multinational snacks and sweets company, while valuing the company at around USD 10 billion.
The media release by PwC stated that this transaction is aimed at positioning Halidram’s to carry on its expansion plans to strengthen its presence in the market, which is facing intense competition. As per the reports, the funds will be utilised for expansion and the promoters are not likely to retain any of the proceeds.
While this deal is related to a 10 per cent stake sale, the reports added that the company is also engaged in advance-stage talks for another such move. The company is currently in talks for an additional five to six per cent stake sell for around USD 500 million.
As far as the current deal is concerned, it is expected to be closed after securing the required regulatory approvals. While the investment banking team of PwC acted as the exclusive financial advisor to the transaction, Khaitan and Co were the legal advisors. The reports highlighted that the company is eyeing to accelerate its growth and solidify its ability to meet evolving consumer demands.
Earlier, the media reports stated that the Sovereign Wealth Fund of Singapore, Temasek Holdings, has sought approval from the Competition Commission of India (CCI) regarding this transaction. Now, the agreement between the two parties has come after months of negotiations as there were multiple private equity (PE) firms that were interested in picking up a stake in the company, the reports added.
