KKR to acquire controlling stak e in JB Chemicals & Pharma

MUMBAI: Buyout major KKR on Thursday said it will pur chase majo rity stake in J B Chemi cals and Pharmaceuticals from its promoters and then make an open of fer to acquir e 26% more in th e branded for mulations company.

The pri vate equit y major has si gned a defin itive agreement to acquire stake from the Mody family at Rs 745 a shar e, w hich is o ver 4% higher than Thursday's close of Rs 715.40, it said.

KKR has entered into a definitive a greement to purchase a "controlling s take" in the company, it said.

If one a ttaches the pr emium promised by KKR, 50% equity in the company is valued a to ver R s 2,860 crore, w hich will b e the minimum amount it will be investing, ex cluding th e open offer.

According to f ilings, the promoter f amily owns 5 5% of the c ompany w hile the rest is with the public.

"We believe J B Chemicals has an opportunity to accelerate its g rowth an d le verage its str engths to e nter into new therapeutic areas.

We look forward to working with the management team to b uild on th e compan y's strong foundation," KKR India P artner and CEO Sa njay Nayar said.

The deal, w hich comes amid a heav y hit to the Indian econom y due to the COVID-19 pandemic , underscores KKR's commitment to "India's long-term econom ic prospects and the p otential of its companies", he added.

This is the th ird deal sealed b y KKR in India in 2020, following its in vestments in five solar assets of Shapoorji P allonji Infra and in Reliance Jio.

The KKR sta tement fu rther said J B Chemi cals is one of the le ading phar maceutical companies in India, supplying af fordable, highquality p roducts in the car - diac, g astrointestinal and anti-infective thera peutic areas acr oss the branded formulations market.