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Oct 18, 2017 12:48 PM IST | Source:

JBF Industries in talks with 3 companies for stake sale: Report

The talks, along with a part of the firm's debt, are being managed by the 20 percent stake owner equity fund KKR.

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Polyester major JBF Industries is in talks with The Chatterjee Group (TCG), Indorama Group and Reliance Industries (RIL) for stake sale that may lead to change of management control, reports Mint.

Sources told the paper that the talks, along with a part of the firm's debt, are being managed by the 20 percent stake owner, private equity fund KKR.

Indorama and TCG are actively involved in the process, the sources told the paper. Currently, the firm is being promoted by the Arya family which holds 43.18 percent stake and it is possible that the deal will not pan out, according to the sources.

They were quoted saying," There is, however, no certainty that a deal will eventually happen but the current interest of strategic buyer hinges on the fact that management control will pass on to them from the current promoters; the Arya family which holds close to 43.18% stake in the company."

JBF is one of the top 10 producers of PET (polyethylene terephthalate) chips and BOPET (biaxially-oriented polyethylene terephthalate), which is stretched out of PET, films globally. The potential suitors of JBF have large petrochemicals businesses. If the deal works out, then JBF Industries will have the leverage of producing PET and BOPET by resourcing in-house raw materials. PET derives its required raw materials from oil.

(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)

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