Alkem was speculated to be the front runner to acquire JB Chem & Pharmaceuticals (JB) from KKR. Torrent had previously dropped out due to the valuation differences.
However, finally it’s Torrent who acquires JB.
- Torrent will acquire 46.39% stake from promoters Tau Investment Holdings Pte Ltd (a unit of KKR) for Rs 11,917 crore; a valuation of Rs 25,689 cr.
- Additionally it would buy another 2.80% from certain employees of JB Chemicals at the same acquisition price of Rs 1,600 per share (totaling Rs 719 crore).
- Post this, in line with the regulatory norms, an open offer to buy additional 26% would be made at Rs 1,639.18 per share (totaling Rs 6,842.8 cr). The open offer price is at 9% discount to the previous day’s closing price.
- Post share purchase, JB will merge into Torrent. Every shareholder holding 100 shares in JB shall receive 51 shares of Torrent.
Samir Mehta Executive chairman, Torrent, commented:
“We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrent’s deep India presence and JB Pharma’s fast growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.”