Four global private equity (PE) firms are competing to acquire Mumbai-based JB Chemicals & Pharmaceuticals.
KKR, Carlyle, Apax Partners and PAG have placed separate non-binding bids that value the pharmaceuticals company at Rs 4,800-5,000 crore ($650 million), The Economic Times reported.
This proposed valuation is a roughly 9 percent premium to JB Chemicals' current market capitalisation.
Moneycontrol could not independently verify the story.
PAG and JB Chemicals have not yet responded to the request for comment by ET while KKR, Carlyle and Apax Partners declined to comment.
Since May 2019, the company's promoter Jyotindra Bhagwan Lal Modi and his family have been in talks to sell their 56 percent stake, the report said.
The promoters' stake in JB Chemicals is worth around Rs 2,516 crore, as per the report.
The final bids are expected to be submitted by the end of June, sources told the publication.
"I think it will take some more time…at least (till) some normalcy comes back in the system post COVID-19 pandemic…to get a sense on when the binding offers should be placed in," a source told the paper.
JB Chemicals hired Avendus to find companies interested in the promoters' stake, the report added.
Shares of JB Chemicals surge over 5 percent on the BSE following the news of the potential acquisition.
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