JB Chemicals shares fall over 6% as Torrent makes open offer at 9% discount
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Shares of JB Chemicals & Pharmaceuticals fell over 6% to Rs 1,681.90 on BSE on Monday after global investment firm KKR announced it would sell its 46.39% stake in the company to Torrent Pharma. The deal values JB Pharma at Rs 25,689 crore on a fully diluted basis. Following the acquisition, Torrent plans to merge JB Chemicals with itself. The deal has been signed at Rs 1,600 per share, which is about 11% lower than JB Chemicals’ Friday closing price of Rs 1,799.35. Torrent has also made a mandatory open offer to acquire up to 26% of JB Pharma from public shareholders at an offer price of Rs 1,639.18, which is about 9% lower than Friday’s closing price. After the acquisition announcement, Nomura and Motilal Oswal maintained neutral ratings on Torrent Pharma, while HSBC reiterated its buy call. “The acquisition will not be a surprise to us, as inorganic expansion, particularly in India, has been a key strategy for TRP in the past. Inves...