Global investment company, KKR, will invest US$150 million into the Mumbai-based JBF Group, an entity that includes JBF’s international subsidiaries.
KKR has signed a definitive agreement with JBF Industries Ltd, a leading manufacturer of polyester value-chain products.
A portion of the proceeds will be used by KKR to acquire a 20 per cent stake in JBF, listed on the BSE Ltd and National Stock Exchange of India. The remaining proceeds will be invested into zero-coupon convertible preference shares with 14.5 per cent voting rights in JBF Global Pte Limited, Singapore, an unlisted subsidiary.
KKR will primarily make its investment from the KKR Special Situations Fund II.
JBF Group is one of the leading global players in the polyester segment, with six manufacturing facilities across India, Bahrain, Belgium and the United Arab Emirates.
“The funding provided by KKR will help JBF complete our ongoing projects. KKR’s support will better enable JBF to grow our international presence and support the Make in India campaign,” said Bhagirath Arya, Founder and Executive Chairman of JBF.
Sanjay Nayar, Member & CEO of KKR India, said, “This type of investment into a world-class company such as JBF is a great example of how KKR can support Indian manufacturing companies providing value to global customers.”
“This is a great milestone for KKR as we make our first investment in India from our new Special Situations Fund,” added Nikhil Srivastava, a Director at KKR and a member of the Special Situations team.
Fortune Financial & Equities Services Pvt Ltd is the exclusive financial advisor to JBF Group.
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