A clutch of global buyout funds- KKR, Carlyle, Apax Partners and Asia’s leading fund, PAG are in a rat race to take over JB Chemicals and Pharmaceuticals. The deal values nearly $650 million.
The proposed deal valuation is 9% higher than JB Chemicals’ current market capitalization.
Its promoters, Jyotindra Bhagawanlal Mody and family have been in talks to sell their 56% stake in the listed entity since May last year. At current market price, their stake is valued at around Rs 2,516 crore.
Four of the global funds have submitted non-binding bids in the range of Rs 4,800-5,000 crore valuation, and final bids are likely to be in by end of June, sources said.
The Mumbai-based company had hired investment bank Avendus to find a buyer for the promoter stake.
Spokespersons with KKR, Carlyle, Apax Partners declined to comment while mails sent to PAG and JB Chemicals did not elicit any response till press time Tuesday.