Indian pharmaceutical giant Piramal Enterprises is seeking to exit from its investments next year in Vodafone Group Plc's local mobile unit, according to its chairman Ajay Piramal.
Piramal owns nearly 11% of Vodafone India Ltdm which he bought in two stages for a total investment worth Rs 5,900 crores or US$1.1 billion. The drug firm bought the shares from Essar Telecom India for a total of nearly 59 billion rupiah. Vodafone is the second largest phone carrier in India.
Vodafone reserves the right of first refusal in the purchase of the Piramal shares should the planned public listing of the company does not occur in the next year and a half.
As for Piramal, the drug company expects a 20% return on its investment in the telecommunications company. Thus the final price should Vodafone exercise its right of first refusal would be between 70 billion and 83 billion rupiah in cash.
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