The Pak Banker - - COMPANIES/BOSS -

Global pri­vate firm Kohlberg Kravis Roberts and Co. Lp (KKR) will in­vest about $150 mil­lion (around Rs.960 crore to­day) in JBF In­dus­tries Ltd, the Mum­bai-based listed polyester maker, ac­cord­ing to a re­port from The Fi­nan­cial Times. The deal is likely to be an­nounced on Fri­day. The money from KKR will be used to com­plete a $600-mil­lion petro­chem­i­cal plant in Man­ga­lore, Kar­nataka, while the re­main­ing por­tion will help re­pay JBF's $1.6-bil­lion net debt, the re­port said.

KKR In­dia of­fi­cials could not be reached for com­ments. KKR will take a 20% stake in JBF, which could rise if the in­vest­ment group takes ad­van­tage of a con­ver­sion mech­a­nism in debt, added the FT re­port. Shares of JBF In­dus­tries were trad­ing 3.7% higher at Rs.318 on the Na­tional Stock Ex­change (NSE) ahead of Fri­day's board meet­ing to con­sider the fund-rais­ing plan. In a fil­ing to the BSE, JBF In­dus­tries said that a meet­ing of the com­pany's board will be held on 31 July to seek the con­sent of di­rec­tors for the is­sue of eq­uity shares and/or war­rants on a pref­er­en­tial al­lot­ment ba­sis to in­vestors. Es­tab­lished in 1982, JBF In­dus­tries was founded by Bha­gi­rath Arya as a yarn tex­tur­iz­ing com­pany, and was in­volved with man­u­fac­tur­ing par­tially-ori­ented yarn, polyester film and var­i­ous types of bot­tle grade, film grade and textile grade polyester chips. JBF was listed n 1986. KKR, which spe­cial­izes in lever­aged buyouts glob­ally, has been ac­tive in In­dia through sev­eral buy­out trans­ac­tions.


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