KKR to invest 960 cr in JBF

MUMBAI: Private equity giant KKR & Co will invest $150 million (Rs 960 crore) into JBF Industries Ltd and its international business subsidiary in Singapore, to help the debt laden polyester maker complete a large petrochemical plant in Mangalore Stock Market Tips  

KKR will own 20% stake in the Mumbai-listed JBF Industries and 14.5% stake in the privately held Singapore subsidiary. It will take one board seat each in both entities."This is a last mile financing to complete a large project, which when comes on stream will bolster the company's cash flows and deleveraging capacity," Sanjay Nayar, CEO, KKR India said. 

The company carries an estimated $1.4 billion debt on its books. JBF manufactures polyester value-chain products used in the fast-moving consumer goods, textile and packaging industries. JBF has six manufacturing facilities across India, Bahrain, Belgium and the United Arab Emirates  Free Share Tips

"The funding provided by KKR will help JBF complete our ongoing projects. KKR's support will better enable JBF to grow our international presence," said Bhagirath Arya, Founder and Executive Chairman of JBF. The promoter family, which holds 54% stake currently, will see it fall below 45% post fund infusion Intraday Trading Tips

"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," Nayar said. 

He added that investment was not deployed to pay back debt, but to bring projects on stream which will help the company Nifty Trading Tips
 

"We are encouraged to see Indian promoters accessing private capital (in the absence of bank financing and bond market) to turnaround their companies," Nayar explained.KKR's other Indian investments include Alliance Tires, Gland Pharma and Coffee Day Holdings