Torrent Pharma is said to seek raising USD 3 billion for KKR stake in JB Chemicals: Report
New York: Torrent Pharmaceuticals Ltd. is looking to raise as much as USD 3 billion from global banks to buy a controlling stake in JB Chemicals & Pharmaceuticals Ltd, Bloomberg News reported citing people familiar with the matter.
Torrent is considering options including dollar and local currency bonds to help fund a potential purchase of KKR & Co.’s 53.8% stake in JB, said the people, asking not to be identified because the discussions are private. Torrent is seeking financing from lenders such as Barclays Plc, Deutsche Bank AG and Standard Chartered Plc, the people said.
JB shares have gained roughly 20% this year, giving the Mumbai-based company a market value of about $3.6 billion.
Deliberations about the stake purchase are ongoing and no final decisions have been made, the people said. Other bidders may still remain interested in acquiring the stake, the people said.
A representative for Torrent didn’t respond to Bloomberg requests for comment. KKR, JB and the banks declined to comment.
KKR has been considering selling its controlling stake in JB, Bloomberg News reported in February. Torrent has been in talks to acquire the US private equity firm’s stake in the company, Moneycontrol reported in April.
Dealmaking activity in India has gained momentum this year as the economy continues to be among the fastest growing in the world.
The flagship company of Torrent Group was incorporated as a small generics drugs company in the early 1970s, according to its website. Its therapeutic areas include cardiovascular, central nervous system and gastrointestinal.
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