US private equity giant KKR has agreed to acquire a 54% stake(41.7 million or 4.17 crore fully paid up equity shares) in Mumbai-based drug manufacturer JB Chemicals & Pharmaceuticals for approximately Rs 3100 crore. KKR will make the investment through its subsidiaries, Tau Investments Holdings Pte. Ltd., Tau Holdco Pte. Ltd., and KKR Asia III Fund Investments Pte.
- For this purpose KKR had signed an agreement. As part of the deal, KKR will acquire the 4.17 million fully paid up equity shares for a price of Rs 745 per share from the JB founding JB Mody & family.
Major Highlights of the deal
i.After this transaction, KKR’s subsidiaries will together buy up to 20,093,346(20.93 million or 2.09 crore) shares of JB Chemicals in the open offer, which is 26% of the voting share capital at a price of Rs 745 per share.
If the open offer is successful it will add another Rs 1,496 crore to the deal, which takes the total value of the deal to Rs 4,605 crore (approximately).
Note: After the acquisition, the management under JB Mody, JB Chemicals’ chairman and managing director, Jyotindra B. Mody will continue to run the company.
KKR’s deal in India(2020)
This is the 3rd deal by KKR in India in 2020 after it acquired 5 solar energy assets from Shapoorji Pallonji Infrastructure Capital (“SP Infra”) SP for Rs 15.54 billion (approximately USD 204 million) on April 27 and 2.3% stake in Jio Platforms for Rs 11, 367 crore. And this is the 2nd deal in the past 2 months.
About JB Chemicals and Pharmaceuticals:
Headquarters– Mumbai, Maharashtra
Managing Director(MD), Private Equity, Mumbai– Rupen Jhaveri
Co-Chairman and Co-CEO– George Roberts