Blackstone out of race for India's Haldiram's over valuation, sources say

By Aditya Kalra

NEW DELHI (Reuters) - Private equity capitalist Blackstone has pulled retired of the contention to prime up a number involvement successful the snacks concern of India's Haldiram's implicit valuation concerns, 2 sources with nonstop cognition of the substance said connected Tuesday.

Rival bidder Temasek remains successful the contention to get a number involvement successful the business, said a 3rd root with nonstop cognition of discussions.

Blackstone had spent 7 months connected the deal, but determination is "no turning back" present from a determination to extremity talks, 1 of the archetypal radical said.

Haldiram's, which besides has edifice operations, is estimated by Euromonitor International to clasp a adjacent 13% stock of India's $6.2 cardinal savoury snacks market, and its snacks concern has proved a tempting plus for galore overseas investors.

But valuation has been a sticking constituent successful the woody talks betwixt Haldiram's and Blackstone, which was initially keen connected a bulk involvement but aboriginal agreed to spell for a smaller share, Reuters reported successful November.

While Blackstone wanted astir a 15% involvement astatine a valuation of astir $8 cardinal and to enactment with absorption successful the future, Haldiram's was lone keen to get them onboard arsenic a fiscal capitalist and astatine a higher valuation of $10 billion, said the archetypal source.

Haldiram's CEO Krishan Kumar Chutani declined to comment. Blackstone did not instantly respond to Reuters' petition for comment, and Temasek declined to comment.

There was besides a disconnect implicit a imaginable IPO timeline. While Blackstone wanted Haldiram's to see an IPO wrong 3 years of investment, the Indian institution was pushing for 5 years.

Haldiram's started successful 1937 with a tiny store successful the metropolis of Bikaner successful the occidental godforsaken authorities of Rajasthan.

One of Haldiram's astir fashionable snacks is "bhujia", a crispy fried Indian snack made with flour, herbs and spices and sold for arsenic small arsenic 10 rupees (12 U.S. cents) successful mom-and-pop stores.

(Additional reporting by Aditi Shah and Dhwani Pandya; Editing by Jan Harvey)