Piramal Healthcare, an Indian pharmaceutical group, has agreed to purchase approximately 5.5 percent of the issued equity share capital of Vodafone Essar Limited from ETHL Communications Holdings Limited for approximately US$640 million in cash. The transaction follows the settlement between Vodafone and Essar over the sale of the latter’s 33 percent stake in Vodafone Essar Limited, which was announced on July 1, 2011.

The announcement says various exit mechanisms are possible in the future for Piramal, including both its participation in a potential IPO of Vodafone Essar Limited and the sale of its stake to Vodafone.  Chairman Ajay Piramal portrayed the Vodafone Essar stake as a financial investment which his company would keep only for 12-24 months. He gave no indication of a mobile health tie-up in the future with Vodafone.