Torrent Pharma to accumulate J.B. Chemicals & Pharma for fairness valuation of 25,689 crore

The transaction can be executed in 2 phases.

In the primary part Torrent will purchase 46.39% fairness stake (on a totally diluted foundation) via a Share Purchase Agreement for of ₹11,917 crore (₹ 1,600 per share) adopted by a compulsory open supply to accumulate as much as 26% of JB Pharma shares from public shareholders at an open supply value of ₹1,639.18 per share. 

In addition to the above, Torrent has additionally expressed its intent to accumulate as much as 2.80% of fairness shares from sure workers of JB Pharma on the similar value per share as KKR.

In the second part Torrent and JB Pharma will merge via a scheme of association. As per the approval given by the Board of Directors of each corporations, upon merger of JB Pharma with Torrent, each shareholder holding 100 shares in JB Pharma shall obtain 51 shares of Torrent.

Samir Mehta Executive chairman, Torrent mentioned, “Torrent’s deep India presence and JB Pharma’s quick rising India enterprise, mixed with the CDMO and worldwide footprint gives immense potential to scale each income and profitability.”

“This strategic alignment furthers our purpose of strengthening our presence within the Indian pharma market, and construct a bigger diversified international presence. Moreover, the CDMO platform gives a brand new long-term avenue of progress for Torrent,” he added.

Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR, and CEO of KKR India, mentioned, “We had collaborated with JB Pharma’s administration crew, led by Nikhil Chopra, to deliver the breadth of KKR’s international expertise and operational experience to assist the corporate’s natural and inorganic progress, and assist JB Pharma turn out to be one among India’s quickest rising branded pharmaceutical corporations.”

Nikhil Chopra, Chief Executive Officer and Whole Time Director, JB Pharma mentioned,“Over the previous 5 years, JB Pharma has emerged as one among India’s quickest rising pharmaceutical gamers, owing to KKR’s strategic steerage, stewardship of our unbiased administrators and a centered strategic and executional excellence by the administration crew.”

 “We have constructed a powerful basis to ship market-leading progress, in addition to constant enchancment in profitability within the medium and long run. As we now enter a brand new chapter alongside Torrent Pharmaceuticals, we’re assured that the mixed strengths of our organisations will unlock larger alternatives to boost healthcare entry throughout our markets,” he added.