Piramal Healthcare and Vodafone Group has announced that Piramal has agreed to purchase approximately 5.5% of the issued equity share capital of Vodafone India Limited (“VIL”) from ETHL Communications Holdings Limited (“Essar”) for a cash consideration of approximately Rs3,007 crores (approximately £385 mn) taking the total shareholding of Piramal in VIL to approximately 11%.
The transaction follows the settlement between Vodafone and Essar over the sale of Essar’s approximately 33% stake in VIL, announced in July 2011, and the purchase by Piramal of approximately 5.5% of the issued share capital of VIL from Essar in August 2011.
The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential initial public offering of VIL and a sale of its stake to Vodafone.