Indian pharma giant inks second biggest deal in sector, buys 46.4% stake from US firm for Rs 18000000000, the company is…
Pharma giant Torrent Pharma has acquired a major stake in JB Chemicals for a whopping Rs 18,000 crore, making it second-biggest deal in the history of India’s pharmaceutical sector. Earlier in 2015, Ranbaxy had acquired Sun Pharma for Rs 24,000, which is considered the biggest acquisition deal in the Indian pharma sector.
How much stake will Torrent Pharma own in JB Chemicals?
As per details, Torrent Pharmaceuticals Ltd, which is owned by Ahmedabad-based Torrent Group, has acquired a 46.4% stake in JB Chemicals from US investment firm KKR, which was the majority stakeholder in the company. The open deal, which makes Torrent Pharma the majority stakeholder in JB Chemicals, is a two-part agreement under which the Indian pharma giant will purchase a 46.4% stake in J.b. Chemicals & Pharma in the first phase.
In the second phase, Torrent Pharma plans to purchase another 26% stake in JB Chemicals & Pharma from public shareholders through an open offer. The deal has also boosted Torrent Pharma among India’s top five pharma companies.
What is JB Chemicals’ valuation?
As per an official release, Torrent Pharma has acquired a majority stake in JB Chemicals at an equity valuation of Rs 25,689 crore from US-based investment firm KKR, and also purchased around 2.8% equity shares from several employees at Rs 1600 apiece. Torrent Pharma plans to merge JB Chemicals in the second phase of the deal, in which JB Pharma shareholders shares will be traded 51 Torrent Pharma shares for every 100 shares of JB.
The current deal is being done at an 11% discount on the share prices of JB Chemical, while an 8.9% discount is applied to the open offer.
Earlier, Torrent Pharma had acquired Elder Pharma, Unichem Labs and Curatio, and is now poised to be become India’s fifth largest pharma company after the current deal is closed.
Biggest deal in pharma sector
In 2015, Ranbaxy completed what is considered the biggest deal in the Indian pharma sector, when it acquired Sun Pharma for nearly Rs 24,000 crore.
News