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.
Following the stake acquisition, Torrent will merge JB Pharma into its operations through a scheme of arrangement, the statement said, adding that JB Pharma shareholders holding 100 shares will receive 51 shares of Torrent after the merger.
