American private investor KKR has agreed to invest $150 million (Rs 930 crore) in Mumbai-based polyester maker JBF Industries for a minority stake, it said in a press release. A portion of the proceeds will be used by KKR to acquire a 20 per cent stake in JBF, listed on the BSE and NSE. 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 manufactures polyester value-chain products ranging from polyester chips, polyester yarn and films which are used in the fast-moving consumer goods, textile and packaging industries. 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 and 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. The transaction is subject to customary closing conditions, including the receipt of shareholder approval and regulatory approvals.
