Haldiram becomes the center of a billion-dollar bidding battle

Haldiram becomes the center of a billion-dollar bidding battle

With offers approaching USD 8–8.5 billion, Haldiram becomes the battlefield for the consortium headed by Blackstone and Bain Capital, paving the way for the biggest private equity purchase in India.

Blackstone, Temasek, and Bain take a large chunk out of Indian snack manufacturer Haldiram. With a heated dispute over control of the massive food company, Haldiram seemed to have reached its peak at 87.

The Blackstone-led group is up against Bain Capital and Singapore's Temasek in an attempt to acquire a majority share in Haldiram Snacks Food Pvt Ltd. If it goes through, this may be the biggest private equity purchase in Indian history.

A non-binding bid from Bain and Temasek last week valued Haldiram at an astounding $8–8.5 billion. This is a reflection of the company's leadership in the snack and convenience food markets in India. Before joining forces, the two parties first had separate interactions with the founding family of Haldiram.

Conversely, Blackstone hopes to purchase up to 76 percent of Haldiram in collaboration with the Abu Dhabi Investment Authority (ADIA) and Singapore's sovereign wealth fund, GIC. ADIA and GIC are two of Bain's limited partners, illustrating the intricate network of connections that exists in the international investing scene.

Bain has been in talks with the Agarwal family, who own Haldiram, for the previous several months. Although the original focus of the discussions was on a minority investment, when the reorganization plan was finalized, the family's interest in selling a majority ownership became apparent. This strategy calls for splitting the restaurant chain, which the family wants to keep, and combining the snack company.

The two groups of bidders want to finalize the agreement in the coming months, coinciding with the merger's approval by the National Company Law Tribunal (NCLT). The merger proposal has received approval from the Competition Commission of India (CCI).

Additionally, this bidding contest is the first time Bain and Temasek have worked together in India. Professionals such as KK Chutani, the chief executive of Haldiram and a former employee of Dabur International, are involved, indicating a move in the company's direction towards professional management.

Although offers are being submitted is a big step, the high value expectations of the Agarwal family might make discussions difficult. But with billions on the line and multinational behemoths fighting for supremacy, the result of this conflict would surely change the snacking scene in India.