Indian snack giant Haldiram, famed for its sweet date delicacies, is not to the taste of private equity giant Blackstone Group (BX) it appears.
No Appetite for Valuation
According to a Reuters report, Blackstone has, said sources, pulled out of the race to buy an up to $15 billion minority stake in the snacks business of Haldiram, owned by the Agarwal family. The report suggested that Blackstone had made the decision to leave the bidding table over valuation concerns. The news left BX stock down 5% today.
It means however that rival bidders, Singapore investment firm Temasek and reportedly PepsiCo (PEP), are left in the race for the 10% to 15% stake worth between $10 billion and $15 billion. It is understood that Blackstone valued the 15% stake at only $8 billion.
IPO Timeline Concerns
There was also some grumbling over a potential IPO timeline, with Blackstone wanting the Indian group to consider an IPO within three years of investment. Haldiram apparently had a five-year timeline on its menu. One of the sources spoken to by Reuters said that Blackstone had spent seven months on the deal and had originally sought a majority stake. But there was no “turning back” now from a decision to end talks.
Haldiram, which also owns restaurant operations, makes snacks such as Khajoor & Anjeer Date and Honeyed Fig bites and bhujia, a crispy fried Indian snack made with flour, herbs, and spices.
Is BX a Good Stock to Buy Now?
On TipRanks, BX has a Moderate Buy consensus based on 7 Buy and 9 Hold ratings. Its highest price target is $230. BX stock’s consensus price target is $190.20 implying an 26.80% upside.
