Shares of JB Chemicals & Pharmaceuticals Ltd. fell over 6% on Monday after Torrent Pharmaceuticals announced the acquisition of majority stake in the company.
Torrent Pharmaceuticals will acquire a controlling stake in JB Chemicals and Pharmaceuticals Ltd. from global investment firm KKR in a deal valued at Rs 25,689 crore on a fully diluted basis, the companies said on Sunday. The transaction includes an acquisition of a majority stake followed by a full merger of the two companies.
Torrent has signed definitive agreements to acquire 46.39% equity in JB Pharma at a price of Rs 1,600 per share in the first phase, translating to a transaction value of Rs 11,917 crore, according to a statement to the exchanges. The deal will then trigger a mandatory open offer for an additional 26% stake at a price of Rs 1,639.18 per share, the statement said.
Torrent has also said that it intends to acquire up to 2.80% of equity from certain JB Pharma employees at the same price as KKR, the statement added.
JB Chemicals & Pharmaceuticals Share Price
Shares of JB Chemicals & Pharmaceuticals fell as much as 6.71% to Rs 1,680.60 apiece. They pared losses to trade 6.53% lower at Rs 1,683.70 apiece, as of 9:35 a.m. This compares to a 0.1% decline in the NSE Nifty 50.
The stock has fallen 4.14% in the last 12 months and 9.13% year-to-date. Total traded volume so far in the day stood at 0.42 times its 30-day average. The relative strength index was at 66.08.
Out of 15 analysts tracking the company, 14 maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 18.1%.
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