Also approves strategic growth investment by Carlyle for 20% stake in Piramal Pharma
The Board of Piramal Enterprises at its meeting held on 26 June 2020 has approved -the sale/ transfer of the pharmaceutical business ('Pharma Business') of the Company, held by the Company directly and through its wholly owned subsidiaries, to Piramal Pharma, wholly owned subsidiary of the Company ('PPL'); and
the strategic growth investment by CA Clover Intermediate II Investments (Carlyle), an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of The Carlyle Group Inc., for a 20% stake in the fresh equity capital of PPL.
The Proposed Transaction values the Pharma Business at an enterprise value (EV) of US$2,775 million with an upside component of up to US$360 million depending on the company's FY21 performance. Based on the EV (excluding the upside component), exchange rate and pharma net debt as on March 31, 2020, the estimated equity capital investment for Carlyle's 20% stake in PPL would amount to ~US$490 million. The final amount of equity investment will depend on the net debt, exchange rate and performance against the pre-agreed conditions at the time of closing of the Proposed Transaction.
The Proposed Transaction is expected to be completed in calendar year 2020, subject to customary closing conditions and regulatory approvals.
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