Piramal Finance Limited has informed the Exchange about update on the divestment of Piramal Imaging SA
PIRAMALFIN · price
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Awaiting price reaction for this filing.
Piramal Finance Limited has received USD 148.099 million (approximately ₹1,250+ crore) as deferred consideration from the earlier sale of its step-down subsidiary Piramal Imaging SA to Alliance Medical Acquisitionco Limited, a deal originally announced in June 2018. The payment is part of contingent earnouts linked to the future profits of the imaging business. The company has stated that further amounts may be received in subsequent years from eligible profits, subject to a total maximum cap of USD 200 million (inclusive of the amount already received), meaning up to ~USD 52 million more could potentially come in. Piramal Finance plans to use the proceeds to further strengthen its balance sheet.
Positive for shareholders — this is a meaningful cash inflow that bolsters the company's balance sheet and capital position, with potential for additional earnout inflows of up to ~USD 52 million in the future.