JBF Industries in talks with 3 companies for stake sale: Report

The talks, along with a part of the firm's debt, are being managed by the 20 percent stake owner equity fund KKR.

October 18, 2017 / 12:48 PM IST

A volunteer packs blankets made from plastic bottles at the Taiwan Buddhist Tzu-Chi Foundation recyling factory in Taipei November 4, 2009. A plastic soda bottle thrown into a recycling bin in Taiwan's capital could be reincarnated as a blanket used to warm disaster victims in any of 20 countries, says the world's largest Buddhist charity. The Tzu-Chi Foundation has been diverting plastic bottles out of the 2.6 million city of Taipei's waste stream for three years to convert into about 244,000 polyester blankets for delivery to disaster zones. To match Life! story TAIWAN-RECYCLING REUTERS/Nicky Loh (TAIWAN BUSINESS ENVIRONMENT SOCIETY) - GM1E5B51FU202

live

bselive
nselive

Volume

Todays L/H

Polyester major JBF Industries is in talks with The Chatterjee Group (TCG), Indorama Group and Reliance Industries (RIL) for stake sale that may lead to change of management control, reports Mint.

Sources told the paper that the talks, along with a part of the firm's debt, are being managed by the 20 percent stake owner, private equity fund KKR.

Indorama and TCG are actively involved in the process, the sources told the paper. Currently, the firm is being promoted by the Arya family which holds 43.18 percent stake and it is possible that the deal will not pan out, according to the sources.

They were quoted saying," There is, however, no certainty that a deal will eventually happen but the current interest of strategic buyer hinges on the fact that management control will pass on to them from the current promoters; the Arya family which holds close to 43.18% stake in the company."

JBF is one of the top 10 producers of PET (polyethylene terephthalate) chips and BOPET (biaxially-oriented polyethylene terephthalate), which is stretched out of PET, films globally. The potential suitors of JBF have large petrochemicals businesses. If the deal works out, then JBF Industries will have the leverage of producing PET and BOPET by resourcing in-house raw materials. PET derives its required raw materials from oil.

(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)