KKR said to invest $150 million in JBF Industries

Mumbai: Global private equity firm Kohlberg Kravis Roberts and Co. Lp (KKR) will invest about $150 million (around Rs.960 crore today) in JBF Industries Ltd, the Mumbai-based listed polyester maker, according to a report from The Financial Times. The deal is likely to be announced on Friday.

The money from KKR will be used to complete a $600-million petrochemical plant in Mangalore, Karnataka, while the remaining portion will help repay JBF’s $1.6-billion net debt, the report said.

KKR India officials could not be reached for comments.

KKR will take a 20% stake in JBF, which could rise if the investment group takes advantage of a conversion mechanism in debt, added the FT report.

Shares of JBF Industries were trading 3.7% higher at Rs.318 on the National Stock Exchange (NSE) ahead of Friday’s board meeting to consider the fund-raising plan.

In a filing to the BSE, JBF Industries said that a meeting of the company’s board will be held on 31 July to seek the consent of directors for the issue of equity shares and/or warrants on a preferential allotment basis to investors.

Established in 1982, JBF Industries was founded by Bhagirath Arya as a yarn texturizing company, and was involved with manufacturing partially-oriented yarn, polyester film and various types of bottle grade, film grade and textile grade polyester chips. JBF was listed n 1986.

KKR, which specializes in leveraged buyouts globally, has been active in India through several buyout transactions.

KKR’s India buyout activities range from Aricent to Alliance Tire Group, and significant stakes in companies like Gland Pharma. In 2013, KKR India acquired Alliance Tire Group from US-based PE firm Warburg Pincus Llc for $460 million in one of the largest private equity buyouts in India. In the largest leveraged buyout in India, KKR acquired a majority stake in telecom software solutions firm Aricent for $900 million in 2006.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.