BackKKR said to invest $150 million in JBF Industries
The deal is likely to be announced today
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Mumbai: Global private equity firm Kohlberg Kravis Roberts and Co. Lp (KKR) will invest about $150 million (around ₹ 960 crore) in JBF Industries Ltd, the Mumbai-based polyester maker, the firm announced on Friday.
KKR will primarily make its investment from the KKR Special Situations Fund II.
A portion of the proceeds will be used by KKR to acquire a 20% stake in JBF, listed on the BSE and NSE. The remaining will be invested in zero-coupon convertible preference shares with 14.5% voting rights in JBF Global Pte. Ltd, Singapore, an unlisted subsidiary, said the company.
Shares of JBF Industries were trading 3.7% higher at ₹ 318 on the NSE ahead of Friday’s board meeting to consider the fund-raising plan. However, they closed at ₹ 300.05, down 2.15% on NSE, and at ₹ 300.65, down 1.83% on BSE.
Established in 1982, JBF Industries was founded by Bhagirath Arya as a yarn texturizing company, and currently manufactures polyester value-chain products ranging from polyester chips, polyester yarn and films, which are used in the fast-moving consumer goods, textile and packaging industries. JBF Group has six manufacturing facilities across India, Bahrain, Belgium and the United Arab Emirates.
“The funding provided by KKR will help JBF complete its ongoing projects. KKR’s support will better enable JBF to grow its international presence and support the Make in India campaign," said Arya, founder and executive chairman of JBF.
The money from KKR will be used to complete its petrochemical plant in Mangalore, Karnataka, while a part of it will also help bring down JBF’s $1.4 billion net debt.
“Many entrepreneurs and promoters are in dire need of capital to complete projects and the funding by private equity firms will give a boost to manufacturing," said Sanjay Nayar, chief executive officer of KKR India.
KKR has been active in India since 2006, with its total equity investments exceeding $1.5 billion.
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