Mumbai – Vodafone Group
PLC Tuesday said it will pay India’s
Piramal Healthcare Ltd. between 70 billion rupees ($1.27 billion) and 83
billion rupees ($1.51 billion) for its about 11% stake in Vodafone India Ltd if
it fails to make its initial public offering with in two years’ time.
The British company
will need to make the payment if it fails to list the Indian unit by Aug. 18,
2013 or Feb. 8, 2014, or if Piramal Healthcare decides not to participate in
its public offering, Vodafone said. Piramal Healthcare had bought an initial
5.5% stake in Vodafone India
for 28.56 billion rupees in August 2011 and another 5.5% stake for about 30.07
rupees billion in February 2012.
At the time, Piramal
Healthcare Chairman Ajay Piramal told reporters the company expects a 17%-20%
annual return from its investment. Vodafone sold the stake to Piramal
Healthcare to likely comply with local rules that don’t allow foreign firms to
own more than a 74% stake in Indian telecommunications ventures. The British
firm had earlier bought out its local partner’s 33% stake in Vodafone India. Vodafone
Group’s current direct shareholding in Vodafone India is 64.4%.