Piramal Healthcare to buy 5.5% stake in Vodafone Essar

Piramal Healthcare has agreed to purchase about 5.5% of the issued equity share capital of Vodafone Essar from ETHL Communications Holdings for cash consideration of Rs 2,856 crore (about $640 million).

The transaction follows the settlement between Vodafone and Essar over the sale of Essar’s of about 33% stake in Vodafone Essar, announced on July 01, 2011.

The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential initial public offering of Vodafone Essar and a sale of its stake to Vodafone.

Piramal Healthcare’s net profit for the quarter has registered growth of 51.08% at Rs 101.09 crore whereas the same was at Rs 66.91 crore for the quarter ended June 30, 2010. Its total income has dropped by 44.17% at Rs 334.83 crore for the quarter under review whereas the same was at Rs 599.73 crore for the corresponding quarter of the previous year.