Torrent Pharma's Strategic Move: A Multi-Crore Acquisition
Torrent Pharma announced its acquisition of majority stake in J B Chemicals and Pharmaceuticals, valued at Rs 19,500 crore. This strategic move positions Torrent as India's second most valued pharma company. Following the announcement, J B Chemicals' shares fell, while Torrent's shares rose. The deal involves multiple transactions and an open offer.
- Country:
- India
Torrent Pharmaceuticals has made headlines with its announcement of acquiring a significant stake in J B Chemicals and Pharmaceuticals. This Rs 19,500-crore acquisition will propel Torrent to become the second most valued pharmaceutical company in India.
The deal entails Torrent acquiring 46.39 per cent stake from Tau Investment Holdings for Rs 11,917 crore. Additionally, Torrent plans to buy a further 2.80 per cent from certain employees at the acquisition price of Rs 1,600 per share.
Following this, Torrent will make an open offer to buy 26 per cent from the open market at Rs 1,639.18 per share. While this price is lower than JB Chemicals' previous closing price, it marks a major transaction in the pharmaceutical arena, second only to Sun Pharma's acquisition of Ranbaxy Laboratories in 2015.
(With inputs from agencies.)
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