KKR is said to consider selling USD 750 million stake in JB Pharma: Bloomberg
KKR & Co., the U.S.-based private equity giant, is exploring a partial divestment of its controlling stake in JB Chemicals & Pharmaceuticals Ltd. (JB Pharma) through a block trade in the market, according to sources familiar with the situation.
According to a Bloomberg report, the firm is working with an investment bank to structure the sale, which could amount to approximately $750 million worth of stock in the Indian-listed pharmaceutical company. However, the stake size could increase to $1 billion, based on investor demand, the people indicated.
Shares of JB Pharma have gained about 16% this year, valuing the company at about $3.5 billion.
Considerations are ongoing and no final decisions have been made, the people said. KKR may seek to launch the stock sale as soon as in the next few weeks, they said.
KKR may seek to reduce its stake in Mumbai-based JB Chemicals to about 25% from the almost 54% it currently holds, the people said, adding that the investment firm may explore selling the remaining stake to a strategic player or another private equity firm in the future, the people said.
A representative for KKR declined to comment, while JB Pharma didn’t immediately respond to a request seeking comment.
KKR had been looking to hire financial advisers to help explore options including selling its controlling stake in JB Pharma, Bloomberg News reported in February.
KKR bought the majority stake in JB Pharma in 2020 from the founding Mody family, along with making an open offer for an additional 26% holding. The shares have jumped almost 430% since KKR announced the planned purchase.
Established in 1976, JB Pharma produces a range of pharmaceuticals in areas such as gastroenterology, hypertension, dermatology and diabetes, according to its website. It exports its tablets, capsules, creams and other formulations to more than 40 countries, including the US.
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