Latest news with #KKR
Time of India
6 hours ago
- Business
- Time of India
Torrent Pharma revives talks to buy KKR stake in JB Chem
NEW DELHI: Ahmedabad-based Torrent Pharma has revived talks with PE major KKR to buy its stake in Mumbai-based JB Chemicals & Pharmaceuticals in a deal which could cost around Rs 20,000 crore. KKR's nearly 48% stake in JB Chem is valued approximately Rs 13,400 crore at its stock's closing price of Rs 1,803 per share on BSE on Friday. The transaction, which will trigger an open offer by Torrent for up to 26% of the company's stake held by public shareholders, is expected to be finalised soon, sources said. Discussions between KKR and other bidders, including Torrent and Micro Labs, ended last year due to valuation concerns. Efforts to reach Torrent Pharma and JB Chem were futile, and KKR officials were not available for comments. The US private equity major has been seeking to exit its investment in JB Chem for some time, and sources indicated this time the deal with Torrent Pharma is likely to proceed. Typically, private equity firms aim to exit investments within three-to-four years. In March, KKR divested about 7% stake through block deals. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Step-by-Step Warehouse Cleaning Guide SearchMore Learn More Undo In July 2020, the PE major had acquired 54% in JB Chem from the promoters, the Mody family, for approximately Rs 3,100 crore or Rs 745 per share. Post acquisition, the company scaled up its domestic formulations business with a strong growth in cardiac, ophthalmology and anti-parasitic therapies. Over the years, the company ramped up its domestic play and improved its revenue from segments that offer sustainable growth and margins. Using organic and inorganic routes, it launched new products that have helped plug gaps in the business. For 2024-25, JB Pharma recorded a revenue of Rs 3,918 crore, registering 12% growth. With a growth of 12%, it outperformed domestic pharma market, which grew 8%.Its top six brands - Rantac, Cilacar, Cilacar-T, Nicardia, Metrogyl, Azmarda - feature among top 300 domestic brands. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
8 hours ago
- Business
- Time of India
Torrent in Advanced Talks to Stitch Up JB Chemicals Buy
Torrent Pharma is in advanced discussions with private equity group KKR to buy JB Chemicals and Pharmaceuticals , almost 10 months after their initial discussions fell through, said multiple people aware of the matter. KKR, the controlling shareholder, owns 47.84% of the company via investment vehicle TAU Investment. The transaction will include buying out KKR from its five-year-old investment. In July 2020, KKR acquired around 54% of JB Chemicals from its promoters and founders, the Mody family, for approximately ₹3,100 crore, translating to ₹745 per share. The deal, if it takes place, will trigger an open offer for an additional 26% of the company. If fully successful, Torrent could end up owning 73.84% of the firm. At current prices, that would amount to ₹20,734.61 crore ($2.4 billion), making it Torrent's largest buyout . KKR's stake alone is worth ₹13,433.69 crore. This will take Torrent to fifth position in the Indian market from seventh now with combined sales of ₹8,662 crore in the domestic market. A formal announcement is expected in the coming weeks, said one of the persons cited. The JB Chemicals stock closed Friday at ₹1,799.35, up 3%, for a market value of ₹28,080.46 crore. The stock hit a 52-week high on August 16, 2024, and has dropped 4.58% in the year to date. JB Chemicals is a turnaround story backed by a string of deals and a push to some of its own brands such as Nicardia (hypertension), Rantac (antiulcer), Cilacar and Metrogyl (antibacterial). For Torrent, these will come handy in the hyper-competitive branded generic market in India, more so because these products have a strong reputation with doctors. JB's leading eight brands account for half of total sales of ₹3,900 crore. Additionally, a deal will allow Torrent to make an entry into the Contract Development and Manufacturing Organisation (CDMO) business via JB's high-quality alliances with multinational companies for cough lozenges. Live Events Sources indicate that Torrent Pharma may also look at merging JB Chemicals with itself in the near term with the aim to derive the benefits of synergies. Torrent, Alkem and EQT were in separate negotiations with KKR last year, when the US buyout fund had launched a formal sale process, but that failed due to a lack of agreement on valuation. The talks with Torrent are said to have resumed bilaterally in recent weeks. KKR declined to comment. Torrent didn't respond to queries. Ahmedabad-headquartered Torrent is also holding financing negotiations with HSBC, Standard Chartered Bank and Barclays to arrange financing of $1.6 billion. These three had been lined up as the financing banks last year as well, and have sought 'refreshed approvals on the bond structure,' said one of the persons cited. The rupee bond facility is being raised to fund the equity requirement for the transaction and is likely to be backed by promoter group entities or select downstream cash flows, the person said. HSBC didn't respond to queries. Standard Chartered and Barclays declined to comment. Moneycontrol was the first to report that Torrent had revived its JB Chemicals buyout plans on Friday evening. Earlier this March, KKR sold a little above 5% of JB in the open market via a block deal and raised ₹1,459 crore. 'Unlike Max Healthcare, where KKR sold significant chunks of the company, in JB Chemicals selling close to 50% would have been difficult,' said an industry executive on condition of anonymity.
Business Times
8 hours ago
- Business
- Business Times
Meta seeks US$29 billion from private capital firms for AI data centres, FT reports
[BENGALURU] Meta Platforms is seeking to raise US$29 billion from private capital firms to build artificial intelligence (AI) data centres in the US, the Financial Times reported on Friday (Jun 27). The Facebook-parent advanced discussions with private credit investors including Apollo Global Management, KKR, Brookfield, Carlyle and Pimco, the report said, citing people familiar with the matter. Meta is looking to raise US$3 billion in equity and US$26 billion in debt, the report said, adding that the company is debating how to structure the debt raising and may also seek to raise more capital. Such a fundraising comes at a time when Meta has doubled down its commitment to AI, including a US$14.8 billion investment in startup Scale AI. Meta chief executive Mark Zuckerberg said in January the company would spend as much as US$65 billion this year to expand its AI infrastructure, seeking to strengthen its position against competitors OpenAI and Google in the race to lead the AI technology landscape. Meta and Carlyle declined to comment, while Apollo Global, KKR, Brookfield and Pimco did not immediately respond to Reuters' requests for comment. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meta was working with its advisers at Morgan Stanley to arrange the financing, and it was considering ways that could make the debt more easily tradeable once it was issued, the FT report said. Major tech companies are investing heavily to secure the vast computing power needed to run AI models, fuelling demand for specialised data centres that link thousands of chips into high-performance clusters. Microsoft has planned a capital expenditure of US$80 billion in fiscal 2025, with most of it aimed at expanding data centres to ease capacity bottlenecks for AI services. Bloomberg News reported in February that Apollo Global Management is in talks to lead a roughly US$35 billion financing package for Meta to help develop data centres in the US. REUTERS
The Star
8 hours ago
- Business
- The Star
Meta seeks $29 billion from private capital firms for AI data centers, FT reports
FILE PHOTO: A Meta logo is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. REUTERS/Annegret Hilse/File Photo (Reuters) -Meta Platforms is seeking to raise $29 billion from private capital firms to build artificial intelligence data centers in the U.S., the Financial Times reported on Friday. The Facebook-parent has advanced discussions with private credit investors including Apollo Global Management, KKR, Brookfield, Carlyle and Pimco, the report said, citing people familiar with the matter. Meta is looking to raise $3 billion in equity and $26 billion in debt, the report said, adding that the company is debating how to structure the fundraising and may also seek to raise more capital. Such a fundraising comes at a time when Meta has doubled down its commitment to artificial intelligence, including a $14.8 billion investment in startup Scale AI. Meta, Apollo Global, KKR, Brookfield, Carlyle and Pimco did not immediately respond to Reuters' requests for comment. Meta was working with its advisers at Morgan Stanley to arrange the financing, and it was considering ways that could make the debt more easily tradeable once it was issued, the FT report said. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Maju Samuel)
Reuters
11 hours ago
- Business
- Reuters
KKR-backed NIQ files for US IPO
June 27 (Reuters) - NIQ Global, a consumer intelligence company backed by investment giant KKR (KKR.N), opens new tab, filed for an initial public offering in the United States on Friday.
