Bain Capital and Temasek, a Singapore-based company, have teamed up to compete for a major stake in Haldiram's, a popular Indian snack company. This bid could become the biggest private equity deal in India.
The Offer
Bain and Temasek made a non-binding offer, valuing Haldiram's at $8–8.5 billion (Rs 66,400–70,500 crore). They are competing with Blackstone, a global private equity fund, which has partnered with Abu Dhabi Investment Authority (ADIA) and Singapore's GIC to bid for up to 76% of Haldiram's.
Previous Collaborations
Temasek, ADIA, and GIC have previously worked as limited partners in Bain's global funds. Last November, Bain raised $7.1 billion for its fifth pan-Asia private equity fund, exceeding its target by 40%.
Talks with the Agarwal Family
For the past seven months, Bain has been in talks with the Agarwal family, who run Haldiram's in Nagpur and Delhi, to invest in the company. Initially, they discussed a minority stake, but the family is now ready to sell most of their ownership after restructuring their business and separating their restaurant chain into a different company.
Synchronizing the Transaction
The potential buyers and the Haldiram family plan to align this deal with an upcoming merger approved by the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI) last April.
Future Collaborations
Bain might involve other partners to form larger groups based on the final stake and valuation. This is the first time Bain and Temasek are working together on a deal in India.
