MUMBAI: US private equity giant KKR & Co. Inc. has emerged as the front-runner to buy a 51% stake in JB Chemicals and Pharmaceuticals Ltd, which manufactures popular over-the-counter drugs rantac and metrogyl.
Two persons confirmed that the companies are in discussion. The proposed acquisition, which would include an open offer, could cost ₹2,500- ₹3,000 crore in an all cash deal that is likely within a month, said the first person. “The discussion is in advanced stages.
A premium of 10-20% to the market value of JB Chemicals can be expected because it is a bulk acquisition involving change in control.
The transaction should value the company at ₹5,000-6,000 crore," added the first person. KKR declined to comment on the development.