JB Chemicals to get investment of Rs. 3,100 crore by stake sale to KKR. Therefore, KKR the US private equity firm has contended that it will acquire a 54% stake in JB Chemicals & Pharmaceuticals as an investment. For a consideration of Rs. 3,100 crore. JB Chemicals is a Mumbai based, one of the oldest pharma companies in India which commenced in 1976.

JB Chemicals ranks number 36 in the Indian drug market. With revenue of Rs 1,501 crore and a net profit of Rs 182 crore in FY19. Sccording to pharma consultancy firm AWACS.

Avendus Capital and Moelis & Company served as financial advisors in the deal while Platinum Partners (Mumbai), Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett were the legal counsels. ICICI Securities will be the manager to the public tender offer.

KKR Wants 54% In JB Chemicals

The investment will be made through Tau Investment Holdings Pte, Tau Holdco Pte and KKR Asia III Fund Investments Pte. “We believe JB Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas,” KKR India partner and chief executive Sanjay Nayar said. “This investment underscores KKR’s ongoing commitment to India’s long-term economic prospects and the potential of its companies,” he added.

Commenting on the deal, Sanjay Nayar, Partner and CEO, KKR India, said, “JB Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas.”

In India, KKR’s pharma and healthcare investments include Max Healthcare, Radiant Life Care and Gland Pharma. It has also agreed to invest Rs 11,367 crore ($1.5 billion) in Reliance subsidiary, Jio Platforms for a 2.32 per cent stake

On July, 2020 11:28 am, JB Chemicals was trading at a price of Rs. 719.65 on NSE. Therefore, they may have a surge in share prces due to this massive buyout. Also, KKR’s investment will be used to advance capitals and increase supply.

 

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TOPICS: Investment JB Chemicals KKR