The Carlyle Group’s CA Clover Intermediate II Investments has agreed to buy a 20% stake in Piramal Pharma Ltd., a wholly owned subsidiary of Piramal Enterprises Ltd. (PEL), for $490 million (₹3,700 crore).
Based on milestone achievements, Piramal Pharma will be paid an additional $70 million. The transaction is expected to close in 2020.
The transaction values PEL’s pharma business at an enterprise value of $2,775 million with an upside component of up to $360 million depending on the company’s FY21 performance.
The pharma business would be hived off as a separate company and listed.
The funds infusion would provide a “war chest” for the next phase of strategy, PEL Chairman Ajay Piramal said.