Pharma major Piramal Healthcare has agreed to acquire additional 5.5 percent stake in cellular services operator Vodafone India for Rs 3,007 crore in cash. The stake will be acquired from ETHL Communications Holdings (Essar), and post the stake buy Piramal will hold about 11 percent in Vodafone India (VIL).
“The transaction follows the settlement between Vodafone and Essar over the sale of Essar’s approximately 33 percent stake in VIL, announced in July 2011 and the purchase by Piramal of approximately 5.5 percent of the issued share capital of VIL from Essar in August 2011,” it said.
The deal contemplates various options for Piramal to exit VIL in future, including through a potential public share sale by VIL and by selling its stake back to Vodafone.
Piramal sold its formulations business to US-based Abbott in 2010 and has been looking to invest outside the pharma space. It recently announced its foray in the financial services segment. It has also entered the real estate sector with the acquisition of IndiaReit Fund Advisors and IndiaReit Investment Managers.