Key Points
Temasek buys 10% stake via Jongsong Investments
Deal valued at $8B amid Blackstone-GIC consortium talks
Funds to fuel Haldiram's domestic and global expansion
PwC India advises on landmark consumer sector transaction
The companies announced the deal in a press release. The transaction is currently awaiting regulatory approvals and is expected to be completed soon.
While the exact financial details of the deal have not been officially disclosed, reports suggest that Temasek is looking to buy around a 10 per cent stake in Haldiram through its subsidiary, Jongsong Investments Pte.
In March, the company sought approval from the Competition Commission of India (CCI) for this investment.
"This transaction is not only the largest private equity consumer deal in India, but also a reflection of domestic businesses that continue to elevate India's positioning on the global stage," said Sanjeev Krishan, Chairperson, PwC India, which acted as the exclusive financial advisor. Law firm Khaitan & Co advised on the legal aspects.
The company plans to use the funds from this transaction to expand its business, both in India and internationally.
A spokesperson for Haldirams said: "We are thrilled to welcome Temasek as an investor and partner. We look forward to working with them to harness their experience in the consumer space to accelerate our growth and meet evolving consumer demands."
Haldiram, one of India's largest packaged food manufacturers, was founded in 1937 and is known for its wide range of snacks, sweets, and ready-to-eat products.
The company has a strong presence in India and international markets. Temasek, which has a net portfolio worth $288 billion as of March 31, 2024, has been actively investing in India's consumer and food sector.
This investment comes at a time when Blackstone Inc., along with Singapore's GIC and Abu Dhabi Investment Authority, is reportedly in talks to buy a separate 20 per cent stake in Haldiram.
According to media reports, this consortium is the preferred bidder for the stake and is looking to invest around $1.6 billion, valuing the company at about $8 billion.
