Torrent Pharma to acquire controlling stake in JB Pharma from KKR

Torrent Pharmaceuticals and global investment firm KKR (KKR) announced that Torrent has entered into definitive agreements to acquire controlling stake in J. B. Chemicals and Pharmaceuticals, or JB Pharma, from KKR at an Equity Valuation of INR 25,689 crores, followed by a merger of the two entities. The transaction marks a significant step in Torrent’s ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international CDMO capabilities. The transaction will be executed in 2 phases: Acquisition of 46.39% equity stake through a Share Purchase Agreement at a consideration of INR 11,917 crores followed by a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at an open offer price of INR 1,639.18 per share. In addition to the above, Torrent has also expressed its intent to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same price per share as KKR. Merger between Torrent and JB Pharma through a scheme of arrangement. As per the approval given by the Board of Directors of both companies, upon merger of JB Pharma with Torrent, every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent.