JB Chemicals is facing a potential roadblock in the sale of KKR’s 54% equity stake, with disagreements emerging over the valuation, as reported by ET Now. The deal, initially projected to be one of the biggest in India’s pharma sector for 2024, is now in jeopardy.
Key players like Torrent Pharma, EQT, and Alkem Laboratories, who were prospective buyers, are reportedly reconsidering their bids due to these valuation disputes. Torrent Pharma had even approached banks for financing the deal, but with the valuation mismatch, all parties are said to be either withdrawing or reconsidering their plans. The market value of KKR’s stake is estimated at around $2 billion, but negotiations have hit a critical impasse.
KKR had initially acquired approximately 65% of JB Chemicals in July 2020, and the potential deal to offload this significant stake has been closely watched in the market. However, as of now, no responses have been provided by KKR, EQT, Torrent Pharma, or Alkem to ET Now’s queries.
This uncertainty has already impacted JB Chemicals’ stock, with shares of JBCHEPHARM falling 4.28% to ₹1,861.10 on the NSE at 10:51 AM, reflecting a loss of ₹83.25 as investors react to the news.
