Pharma mergers: Torrent to acquire majority stake in JB Chemicals for Rs 19,500 crore, open offer to follow
Torrent Pharmaceuticals on Sunday announced that it will acquire a controlling stake in JB Chemicals & Pharmaceuticals in a Rs 19,500 crore deal, making it India's second most-valued pharma firm by market capitalisation.
Torrent will acquire 46.39% stake from the promoters for around Rs 11,917 crore, and an additional 2.80% from certain JB Chemicals employees for Rs 719 crore. Both transactions are being executed at Rs 1,600 per share, according to PTI report.
Following this, Torrent will make an open offer for a 26% stake from public shareholders at Rs 1,639.18 per share, totalling Rs 6,842.8 crore, in line with listing regulations.
'This will be the second-largest transaction in the Indian pharma sector,' Torrent Pharma said in a statement, PTI quoted.
Torrent Pharmaceuticals and global investment firm KKR jointly announced the deal, which values JB Chemicals at an equity valuation of Rs 25,689 crore on a fully diluted basis.
The agreement includes a plan to merge the two entities, the company said.
Torrent stated that the acquisition marks a strategic milestone, enabling it to build a future-ready healthcare platform that combines its chronic segment strength with JB Chemicals' presence in international CDMO (contract development and manufacturing organisation) operations
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