KKR & Co. and its affiliates said on Thursday that they have entered into an agreement to purchase controlling stake in JB Chemicals & Pharmaceuticals Ltd.
The investment firm signed a share purchase agreement on Thursday to acquire up to 54% stake—or 4.17 crore stocks—in the company from its promoters in tranches at Rs 745 apiece, JB Chemicals said in a statement. The offer price is at a premium of 4% from the drugmaker's current market price and the transaction would amount to nearly Rs 3,109 crore.
The promoters hold 55.91% stake in the company at present.
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KKR is expected to make a mandatory open offer in accordance with the market regulator's guidelines to acquire an additional 26% stake—or 2.01 crore shares—in the company at Rs 745 per share. This transaction would amount to nearly Rs 1,497 crore, according to an exchange filing.
Shares of JB Chemicals have gained nearly 68% so far this year, while the broader Nifty 500 Index has declined by 12.4%.
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