Singapore sovereign wealth fund Temasek has emerged as the frontrunner to pick up a minority stake in India’s biggest snack maker, Haldiram Snacks, Moneycontrol reported on Tuesday, citing industry sources.
Other suitors in the final lap of the proposed transaction include Blackstone and Alpha Wave Global.
According to the report, a term sheet has been signed between Temasek and the promoters of Haldiram Snacks.
“This is a pre-IPO deal and is expected to set a valuation benchmark. The plan is for Temasek to pick up less than 10% stake at a valuation of $10-11 billion for the entire firm,” the report said, citing a person in the know.
The report added that the target is to reach final agreements in February.
Haldiram Snacks has been exploring options, including a sale of the business and a potential IPO.
In May, media reports said that a consortium led by private equity fund Blackstone, along with the Abu Dhabi Investment Authority (ADIA) and GIC of Singapore, submitted a non-binding bid to acquire a controlling stake in Haldiram Snacks Food.
Later in November, Reuters reported that Blackstone dropped plans to acquire a majority stake in the snacks business of India’s Haldiram’s but is now discussing the purchase of a 20% stake at a valuation of $8 billion.
Temasek has deployed nearly $37 billion in India over the past two decades, according to 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 plans to invest up to $10 billion in India over three years in sectors such as financial services and healthcare, Reuters reported in July, favouring India as it turns cautious on China.
