PEL Share Price Surges 4% on $200 Million Deferred Payment from Subsidiary Sale

Piramal Enterprises Limited (PEL) recently announced that it stands to gain significant deferred consideration following the sale of Life Molecular Imaging Limited, part of its former subsidiary group. This development marks a pivotal moment in PEL’s financial journey since divesting Piramal Imaging SA in 2018. 

The share price of Piramal Enterprises was trading 4.51% higher at ₹989 on the NSE as of 10:25 AM on January 14, 2025. The stock touched an intraday high of ₹1,025 on the NSE.

Background of the Transaction

In 2018, PEL divested its stake in Piramal Imaging SA to Alliance Medical Acquisition Limited. At that time, the agreement included a provision for deferred consideration contingent on the future profitability of the Imaging Group. This forward-looking clause has now materialised as Life Healthcare Group Holdings Limited, the acquirer of Piramal Imaging, has entered into binding agreements for the sale of Life Molecular Imaging Limited.

Deferred Consideration Details

On the successful completion of this transaction, PEL expects to receive an estimated $140 million during FY2026. The total deferred consideration may extend up to $200 million, inclusive of future profits and earnouts from the Imaging Group. The exact amount will depend on final closing adjustments and future performance benchmarks.

The Role of Life Healthcare

Life Healthcare Group Holdings, the current owner of Life Molecular Imaging, is driving this transaction. The proposed sale, however, remains subject to shareholder approval and regulatory compliance. 

Key Highlights of the Transaction

• Deferred Consideration: Up to $200 million linked to the Imaging Group’s performance.
• Initial Payment: $140 million expected in FY2026.
• Transaction Parties: Life Healthcare Group Holdings and prospective buyers of Life Molecular Imaging.
• Regulatory Requirements: Subject to approvals from shareholders and relevant authorities.

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