Torrent Pharma to Acquire Majority Stake in JB Pharma from KKR for Rs 25,689 Crore Valuation

Torrent Pharmaceuticals Limited and global investment firm KKR have announced that Torrent will acquire a majority stake in JB Chemicals and Pharmaceuticals (JB Pharma) from KKR at an equity valuation of Rs 25,689 crores. This will be followed by a merger of the two entities, making it India's second most valued pharma company.

Torrent will acquire 46.39% stake from promoters Tau Investment Holdings Pte Ltd for about Rs 11,917 crore and an additional 2.80% from certain employees of JB Chemicals at the same acquisition price of Rs 1,600 per share. Following this, an open offer will be made to buy 26% from the open market at Rs 1,639.18 per share.

This deal is the second biggest in the pharma sector, following Sun Pharmaceutical Industries' acquisition of Ranbaxy Laboratories in 2015.

According to Torrent's Executive Chairman, Samir Mehta, the acquisition will strengthen Torrent's presence in the Indian pharma market and provide opportunities for global growth. Gaurav Trehan from KKR expressed pride in the transformation of JB Pharma under their stewardship.

The deal will give Torrent access to JB Pharma's leading brands and expand its presence in untapped therapeutic areas. It is expected to enhance Torrent's market share in India and diversify its operations into contract development and manufacturing.

The acquisition is subject to various regulatory approvals, including from SEBI, Stock Exchanges, CCI, NCLT, and others.

According to the source: Moneycontrol.