Piramal gets shareholders' nod for Abbott deal

Shareholders of Piramal Healthcare have approved the $3.72-billion (about Rs 18,000 crore) deal by the company to sell its domestic solutions business to US-based Abbott Laboratories.

The company, which had sought shareholders' approval through a postal ballot in May, informed the Bombay Stock Exchange (BSE) last week that an overwhelming majority had approved it.

"Of the total non-promoter votes that were exercised, 99.85 per cent votes are in favour..." the company said.

Besides, the company said that its shareholders have also approved a payment of Rs 350 crore to group company Piramal Enterprises for providing guarantee, non-compete agreement and other undertakings in connection with the deal.

Last month, the company had inked a deal with Abbott to sell its domestic solutions business, under which the US firm agreed to pay $2.12 billion upfront, followed by four annual instalments of $400 million each.

As part of the deal, Abbott would get Piramal's manufacturing facilities, and rights to market over 350 brands in the domestic business.

Promoters of Piramal Healthcare, however, would retain their R&D, overseas and active pharmaceutical ingredients' (drug raw materials) business.

Under the terms of agreement, Piramal has agreed to not engage in generic pharmaceutical business in the country over the next eight years.