Torrent Pharma said on Sunday that it would buy a large stake in JB Chemicals and Pharma for Rs 19,500 crore. Torrent Pharma will become India’s second most valuable pharma company on completion of the deal. Torrent Pharma will gain 46.39 per cent stake from promoters for about Rs 11,917 crore. Apart from this, she will also buy 2.80 per cent stake from some employees of JB Chemicals at an acquisition price of Rs 1600 per share (about Rs 719 crore). Subsequently, an open offer will be brought for buying a 26 per cent stake (Rs 6842.8 crore) from the open market at a price of Rs 1639.18 per share as per the share list listing criteria.
The second largest deal will be in the pharma sector
This will be the second largest deal in the pharma sector so far. Earlier, Sun Pharma acquired Ranbaxy laboratories in 2015. The company said in a statement, “Torrent Pharma Limited and Global Investment firm KKR has announced today that Torrent has made decisive agreements to get a merger of Rs 25,689 crore in JB Chemicals & Pharma from KKR to get a controller share on the equity valuration of Rs 25,689 crore (on a fully paid basis), after which both companies will be merger.” Torrent is an important step in the ambition to create a variety of healthcare forum, ready for the future.
JB Pharma investors will get 51 shares of Torrent on 100 shares
The price of open offer is less than Rs 1799.35 per share of JB chemicals on BSE. Under the merger plan, each shareholder holding 100 shares in JB Pharma will get 51 shares of Torrent. The deal will allow Torrent to reach the leading brands of JB Pharma in the chronic segment and increase opportunities in medical fields such as ophthalmology. The deal is expected to strengthen the market share of Torrent in the Indian pharmaceutical market and diversify contract development and manufacturing. However, these deals are subject to regulatory approval, including SEBI, Stock Exchange, Competition Commission of India (CCI), National Company Law Tribunal (NCLT) and other approvals.
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