Piramal Enterprises jumps 5% on sale of healthcare analytics unit

Shares of Piramal Enterprises (PEL) advanced over 5 per cent in Friday’s trade after the company informed bourses that its Dutch unit has signed a deal to divest healthcare analytics business Decision Resources Group (DRG) to US-based Clarivate Analytics plc for $950 million.

The deal is expected to be completed next month, Piramal said in a statement filed to the stock exchanges.

The transaction is subject to shareholder approval and is likely to be completed by February end.

PEL had initially invested $650 million in 2012 to acquire DRG out of which $260 million was infused as equity. It has realized 2.3 times its initial equity investment in rupee terms.

Ajay Piramal, Chairman, Piramal Group said: “We are pleased to have grown DRG’s market leadership over the last few years and believe that through this combination, Clarivate, with its size and scale, is well-positioned to further accelerate DRG’s growth potential. This transaction demonstrates our continued commitment to create sustained long term value for all stakeholders. Along with the ongoing equity capital raise in PEL, this transaction not only further strengthens the company’s balance sheet but also marks another step towards significantly unlocking value in future.”

The shares of the company closed 5.18 per cent higher at Rs 1627.05 on BSE.