Reports note that company has approached the founders of Balaji wafers and have proposed a deal that could result in the General Mills getting a majority holding
After PepsiCo, ITC and other private equity firms showed interest in acquiring a significant minority stake in Balaji Wafers, reports note that United States multinational General Mills Inc has also joined the race to buy the stake.
The reports noted that the company has approached the founders of Balaji wafers and have proposed a deal that could result in the General Mills getting a majority holding. However, the promoters are looking to sell only a 10 per cent stake as of now. The talks with multiple players are currently in a very early stage.
Balaji Wafers is considering this stake sale as a way of bringing in professional management, as the company already enjoys a healthy cash reserve. The company, which is looking at an initial public offering (IPO) going ahead, will put the money raised from the stake sale in the family trust and will not be utilised for its operations, as per the reports.
The company is expected to complete the process of shortlisting the potential buyers in three months. Regional snack brands in the country are attracting investor interest as they have been growing at a faster pace than the bigger players. Investors like Alpha Wave Global, Singapore’s Temasek and IHC together acquired around 10 per cent stake in Haldiram Snacks Food in March.
On the other hand, reports noted that PepsiCo, which has a strong presence in western snacks such as chips and nachos, has been lagging behind the local brands in the ethnic snack category. An alliance with Balaji would provide the United States’ snack foods and beverage multinational a crucial backend upside in cracking regional markets.
