The stock analysis reports show that TATA wanted to buy more than 51% stake in Haldiram but Haldiram replied that the ‘ask is very high’. Tata Group’s Consumers want the 51% stake in popular snack food maker Haldiram.
Haldiram said they are not comfortable with the deal when the valuation is less than $10 billion. But if it happens then the deal would impact the biggest competitors in India, Pepsi India and Ambani’s Reliance retail.
Haldiram is also trying to talk with private equity firms, Bain Capital is about to sell a 10% stake. Some insider reports revealed that UK tea company Tetley owned by Tata Consumer Products Ltd and Starbucks which has a partnership with TATA, are negotiating for the stake purchase.
TATA Consumer clarified that in a stock exchange filing,
“The Company is not in negotiations as reported in the above-referred news article. We are not aware of any information that has not been announced to the Exchanges, which requires disclosures under Regulation 30 of the SEBI (LODR) Regulations, 2015. There is no impact of this article on the Company. We would like to add that the Company evaluates various strategic opportunities for growth and expansion of the business of the Company, on an ongoing basis. The Company will make appropriate announcements in compliance with the obligations under SEBI (LODR) Regulations, 2015, as and when any such requirement arises”.
But the $10 billion valuation sought by Haldiram for the deal with TATA. The valuation is 6.6 times its $1.5 billion annual revenue. Purchasing Haldiram’s stake would be beneficial for TATA Consumers’ market share and product reach.
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