JB Chemicals shares crack over 6%, Torrent Pharma up over 1%: Check key details

Torrent Pharmaceuticals on Sunday announced the acquisition of a majority stake in J B Chemicals and Pharmaceuticals in a ₹19,500 crore deal that will make it India's second most valued pharma company.

Torrent will acquire a 46.39% stake from promoters Tau Investment Holdings Pte Ltd (a unit of KKR, the global investment firm) for about ₹11,917 crore. It would additionally buy another 2.80% from certain employees of JB Chemicals at the same acquisition price of ₹1,600 per share (totalling ₹719 crore).

Post this, it would make an open offer for buying 26% from the open market, as per listing norms, at a price of ₹1,639.18 per share (totalling ₹6,842.8 crore).

The open offer price is at a discount to Friday's closing price of ₹1,799.35 apiece for JB Chemicals on the BSE.

This will be the second biggest deal in the pharma sector ever, behind Sun Pharmaceutical Industries' 2015 acquisition of Ranbaxy Laboratories.

"Torrent Pharmaceuticals Limited and global investment firm KKR today announced that Torrent has entered into definitive agreements to acquire a controlling stake in J B Chemicals and Pharmaceuticals from KKR at an equity valuation of ₹25,689 crores (on a fully diluted basis), followed by a merger of the two entities," a company statement said.

On the other hand, shares of Torrent Pharma were trading 1% higher at ₹3,373.40 apiece on the NSE.

J.B. Chemicals, established in 1976, is one of India's leading pharmaceutical companies. It is engaged in the business of manufacturing and marketing a diverse range of pharmaceutical formulations, herbal remedies and active pharmaceutical ingredients (APIs).

The company offers a wide range of solutions which include tablets, capsules, herbal syrups, lozenges and injectables, covering therapeutic categories of cough & cold (respiratory), dermatology, gastroenterology, cardiology and radiology.