New Delhi. Fast moving consumer goods maker Colgate Palmolive India Ltd has bought 25% stake in Hyderabad-based SS Oral Hygiene Products Pvt. Ltd for Rs77,70,000. Consequently, SS Oral would be merged with parent company.
“Colgate Palmolive has acquired the remaining 25% share capital from the local shareholders at an aggregate price of Rs77,70,000,” the company said in a filing to the Bombay Stock Exchange.
“The board of directors considered and approved a scheme of amalgamation which provides for the merger,” the company said.
Last year, the company had acquired 75% stake in SS Oral Hygiene, a toothpaste manufacturer for an undisclosed amount.
The entire equity share capital of SS Oral is held by Colgate Palmolive, therefore, upon the scheme becoming effective the entire equity share capital of SS Oral will stand automatically cancelled and there will be no issue and allotment of shares pursuant to the scheme, according to the filing.
The scheme of amalgamation is, inter-alia, subject to the necessary approvals under the Companies Act, 1956 including the high Court of Andhra Pradesh, it added. Colgate-Palmolive manufactures and markets prominent brands for personal care and oral care.