Blackstone has dropped plans to acquire a majority stake in the snacks business of India’s Haldiram’s but is now discussing purchase of a 20% stake at a valuation of $8 billion, which is still a sticking point, sources told Reuters on Thursday.
Haldiram’s, which Euromonitor International estimates has a share of almost 13% of India’s $6.2-billion market for savoury snacks, has more than 150 restaurants, but many foreign investors are salivating over its popular snacks business.
In May Reuters reported a consortium led by Blackstone was eyeing a stake of 75% in the business and had made a non-binding bid, but those talks did not materialise as Haldiram’s is no longer keen to sell a big stake, said the sources, who sought anonymity as the discussions are private.
“Blackstone is keen to close the transaction as a lot of effort has gone into it,” said one source with direct knowledge of the issue.
There is a disconnect over valuation, though, with Haldiram’s wanting to value the snacks business at $12 billion, but Blackstone aiming to seal the deal at $8 billion, two of the sources said.
