Temasek in talks for $1.3 billion-plus stake in India’s biggest snack maker
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Temasek has deployed nearly US$37 billion in India over the past two decades.
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MUMBAI - Temasek is in talks to buy a minority stake in Haldiram Snacks, people familiar with the matter said, a transaction that may value India’s biggest snack maker at about US$11 billion (S$14.3 billion).
The Singapore state investor is holding preliminary talks to buy a 10 per cent to 15 per cent stake in Haldiram, the people said, asking not to be identified because the matter is private.
This works out to a possible US$1 billion-plus stake in the Indian company.
The investment may serve as a stepping stone towards a potential initial public offering (IPO) of the company, the people said.
Talks are ongoing and may not lead to a transaction, the people said, adding that the company has drawn interest from other prospective bidders.
A representative for Temasek declined to comment, while Haldiram did not have an immediate comment.
Founded by Ganga Bishan Agarwal in the 1930s in north India, Haldiram sells a range of foods from sweet and savoury snacks to frozen meals and breads.
It also runs 43 restaurants in and around Delhi, according to its website.
The Agarwal family has been exploring options including a sale of the business and a potential IPO, Bloomberg News has reported.
Global investors have been increasing their focus on India, lured by its rapid economic growth. That has turned the country into a hotspot for deal-making.
Temasek has deployed nearly US$37 billion in India over the past two decades, according to Mr Vishesh Shrivastav, its managing director for India investments. That figure is set to rise sharply, with the company saying last year it planned to commit billions more.
Temasek has been targeting minority stakes and helping Indian companies to grow, largely eschewing the trend of taking majority holdings in firms based in the world’s most populous country. Core areas include digitalisation, consumption and sustainable living, according to Mr Shrivastav.
Those potential minority investments include VFS Global, in a transaction valuing the visa outsourcing and technology services firm at about US$7 billion including debt, Bloomberg News has reported. BLOOMBERG
