People familiar with the matter: Temasek acquires 10% stake in Indian Food Company for 1.3 billion yuan

Singapore's state-owned investment company Temasek has signed an agreement to acquire nearly 10% of India's Haldiram's for about US$1 billion (S$1.33 billion), two people familiar with the matter said.

According to a Reuters report on Wednesday (March 12), a source who asked not to be named said the deal was signed after months of negotiations, and Temasek believes that the investment in Haldirham is a “valuable asset” that will help Temasek expand its investment in India's consumer sector. Temasek's acquisition price gives Haldiram a valuation of about $10 billion.

Temasek said it would not comment on market speculation. Reuters reporters called Krishan Kumar Chutani, CEO of Haldirham, but no one answered.

More than a week ago, Reuters reported that private equity investor Blackstone had withdrawn from competition for acquiring minority stake in Haldirham due to valuation issues.

The Haldirham Company was founded in 1937 and was originally just a small shop in Bikaner, Rajasthan, the desert state of the western India. Euromonitor International estimates that Haldiram has a nearly 13% share of India's $6.2 billion delicious snack market, and its snack business is an attractive asset for many foreign investors.

Further reading

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Temasek plans to invest 14.3 billion yuan in Indian food companies