Torrent Pharma not planning to make leadership changes after buying JB Pharma

Ahmedabad -based drug producer Torrent Pharmaceuticals will not be able to make leadership changes in JB chemicals and drugs. La19,500-CRORE agreement, to get a control share.

Torrent said on Sunday that he would receive a control of the global investment company KKR at JB Pharma. La25,689 Crore. The agreement will monitor the agreement. The agreement is expected to be completed within 15-18 months and is probably expected to be financed by debt.

Torrent Pharmaceuticals all Time Director and General Manager Aman Mehta, JB Pharma Leadership Plans asked to investors in the statement, “At this stage, as usual, there is no intention of changing anything,” he said.

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“We acknowledge that the scale of this purchase is much larger than our past. “… In the direction, even in this case, it should be quite similar to what we see in the last three agreements,” he added.

In the last five years, JB Pharma, under the leadership of the chief executive officer Nikhil Chopra, has emerged as one of the fastest growing pharmaceutical companies in India. Cipla, who was previously vice president, was brought after the purchase of 54% shares from the MODY family in JB Pharma in July 2020. La3,100 CRORE or La745 per share.

Torrent’s management refused to share information about the future plans for the agreement.

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Torrent Pharma’s Finance Manager Sudhir Menon is expected to be EPS (earning per share), the first year of the combined asset.

Agreement

Torrent buys a 46.39% stock (on a completely diluted basis) in the JB Pharma with a purchase agreement. La11.917 CRORE La1,600 per share and then a compulsory open offer to obtain 26% of the company’s shares from public shareholders La1.639.18 per share La6,843 Crore.

Torrent also plans to buy up to 2.80% of the stock shares at the same share price as KKR, one of the JB Pharma’s employees. La1,600 per share, total La719 Crore.

The purchase will follow a merger between torrent and jb pharma through an editing scheme subject to the required regulatory approvals.

Purchase will provide torrent access to a rapidly growing Indian franchise with the introduction of JB’s leading brands in the chronic segment and unused therapeutic areas such as ophthalmology and IVF.

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Following the agreement, Torrent carries the rank in the Indian pharmaceutical market from the 7th position to the 5th position. “If the double-digit growth continues in a combined asset, we think Torrent can become a company number 4 in India in 3-4 years,” he said.

The agreement also facilitates Torrent’s entry into contract development and manufacturing organization segment. It will also help consolidate in the key international markets.

“Although JB Chemicals operates efficiently under the ownership of KKR, JM Financial is expected to open the lock of more value through the reduction of institutional costs and potential synergies in the field force, especially since both companies have a strong asset in cardiology and gastroenterology therapies,” he said.

Torrent is likely to finance the agreement through debt.

Menon, “Initially, the leverage required for this process seems quite comfortable in terms of a service. However, depending on the result of the MTO (compulsory tender offer), we will see whether a variability, equity mixture is necessary,” he said.