Bain and Temasek partner to compete with the Blackstone-led consortium for controlling a stake in Haldiram's

Bain Capital and Singapore-based Temasek have partnered to compete with Blackstone's consortium for a majority stake in Haldiram Snacks Food, potentially India's largest private equity purchase to date, as reported by ET.

The two companies made a non-binding offer, valuing the company at $8-8.5 billion (Rs 66,400-70,500 crore). Blackstone, the global private equity fund, had previously partnered with Abu Dhabi Investment Authority (ADIA) and Singapore's sovereign wealth fund GIC to bid for a majority stake of up to 76% in the company.

Temasek, ADIA, and GIC are limited partners in Bain's global funds. In November, Bain successfully raised its fifth pan-Asia private equity fund, surpassing its target by 40% with a total of $7.1 billion.

Over the past seven months, Bain has been in sporadic talks with the Nagpur and Delhi factions of the Agarwal family, who oversee Haldiram, to invest in the company while the group was finishing up a nationwide restructuring plan.

Conversations intensified towards the end of 2023, focusing more on a minority stake. However, the family is now ready to sell off most of their ownership after combining their snack business and splitting off their restaurant chain into a company they will keep.

The suitors, along with the Haldiram family, aim to synchronise the transaction with the upcoming National Company Law Tribunal (NCLT) approved merger, which was given the green light by the Competition Commission of India (CCI) last April.

Bain may involve other LPs and partners to create larger consortiums based on the final stake and valuation. This marks the debut collaboration between Bain and Temasek on a deal in India.