Temasek, a Singapore-based state investment firm, is close to finalizing a deal to purchase a 9% stake in India’s Haldiram, a popular food and beverages company. The deal is reportedly valued at around $10 billion, according to sources. This move would be one of the largest foreign investments in an Indian company.
Blackstone, a US-based private equity firm, was initially in the running to acquire a significant stake in Haldiram, but it has reportedly backed out of the deal due to valuation disputes. Blackstone was said to have valued Haldiram at around $2 billion, lower than the company’s management’s expected valuation of $10 billion.
Temasek, on the other hand, is said to be willing to pay around $10 billion for a 9% stake, which would value the entire company at around $11.1 billion. This indicates that Temasek is willing to pay a premium for the stake, showing confidence in the company’s prospects.
The deal is likely to be a strategic one for both sides. For Haldiram, the investment would provide much-needed capital to fund its expansion plans and help the company grow its presence in the Indian market. For Temasek, the investment would be a significant addition to its Asian portfolio, particularly in the Indian market, which is expected to continue growing in the coming years.
The deal is also seen as a vote of confidence in the Indian economy and the country’s industrial sector. It would be one of the largest foreign investments in an Indian company, and is likely to attract more foreign investors to the country. The deal is expected to be finalized in the coming weeks, pending regulatory approvals.