Singapore’s state investment company Temasek has signed a deal to pick up close to a 10% stake in the snacks business of India’s Haldiram’s at a cost of about $1 billion, two people with direct knowledge of the matter said on Wednesday.
The deal was signed after months of negotiation and Temasek considers Haldiram’s a “prized asset” that will help expand its focus on India’s consumer sector, said one of the sources, who declined to be named as the decision is private. Temasek’s purchase price translates into a roughly $10 billion valuation for the company.
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Temasek said it will not comment on market speculation regarding the signing. Calls to Haldiram’s CEO Krishan Kumar Chutani were not answered.
Temasek’s stake purchase comes just over a week after private equity investor Blackstone pulled out of the race to acquire a minority stake in Haldiram’s, citing valuation concerns, Reuters reported earlier this month.
Haldiram’s, which started in 1937 with a tiny shop in the city of Bikaner in the western desert state of Rajasthan, is estimated by Euromonitor International to hold a near 13% share of India’s $6.2 billion savoury snacks market, and its snacks business has proved a tempting asset for many foreign investors.
One of Haldiram’s most popular snacks is “bhujia”, a crispy fried Indian snack made with flour, herbs and spices and sold for as little as 10 rupees (12 U.S. cents) in mom-and-pop stores.
Temasek, which has expanded its India footprint with investments in Manipal Hospitals and KFC and Pizza Hut operator Devyani International, is now betting on the country’s snacks market with the stake in Haldiram’s.
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