Market downturn delays Haldiram stake sale, Blackstone exits race: Report

Haldiram

The sharp drop in the stock market, walloped by global uncertainties, has delayed the planned stake sale in Haldiram, the multinational snacks and savoury foods company, the Business Standard has said.

American private-equity firm Blackstone, which earlier reportedly emerged as the preferred bidder for a minority stake, has now backed off, citing a high valuation of the group like some other prospective buyers, the report said .

Moneycontrol couldn't independently verify the report.

Singapore-based Temasek was in advanced talks to buy a 10 percent stake in the company at a valuation of $10-11 billion, Moneycontrol reported  in January. However, the market downturn in the past six months, coupled with slowing consumption, have made the prospective buyers lose interest, the Business Standard report said.

The Sensex has tumbled nearly 13,000 points from its September highs when it touched 86,000. The Nifty is hovering near its crucial level of 22,000 (which coincides with the 100-day EMA). The sentiment remains in favour of the bears, as every rebound is expected to face pressure, experts said.

The rout and rupee's recent depreciation have depressed the valuations, the report cited an investment banker as saying, who added "we are now in a buyer's market".

Earlier, Reuters reported that Tata Group was in talks with Haldiram to acquire a majority stake in the snacks and restaurants business. The talks ended without a deal.

Founded by Ganga Bishan Agarwal in the 1930s, Haldiram sells a range of foods from sweet and savory snacks to frozen meals and breads. It also runs 43 restaurants in and around Delhi, according to its website