CCI approves acquisition of JB Chemicals by Tau Investment

Competition Commission of India (CCI) approved the proposed acquisition of JB Chemicals & Pharmaceuticals by Tau Investment, on Wednesday. JB Chemical is a Mumbai-based manufacturer of APIs and chemical formulations.

The approval information was released by Ministry of Corporate Affairs. The statement said that CCI has approved the proposal of Tau Investment to acquire shares in JB Chemicals. The stated proposal is for the envisaged acquisition of up to 64.90 per cent of the share capital of JB Chemicals & Pharmaceuticals Limited by Tau Investment Holdings Pte Ltd (Tau Investment). This is the maximum eligible shareholding that can be acquired in certain conditions by the acquirer.

Tau Investment is an indirect wholly-owned subsidiary of KKR Asian Fund III LP, which was incorporated in Singapore. KKR Asian Fund is an affiliate of funds, vehicles and entities managed & advised by Kohlberg Kravis Roberts & Co. LP, which is an indirect subsidiary of KKR & Co. Inc.

In July 2020, Tau Investment has made an open offer to acquire up to 2,00,93,346 shares of JB Chemical to its existing shareholders. The open offer constitutes 26 per cent of the voting share capital, at the offer price of Rs 745 per equity share, subject to the terms and conditions.

The opened higher by 2 per cent at Rs 803 on BSE.