Colgate-Palmolive (India) has dipped over 3% at Rs 1,239 after the company said it plans to sell a division to a unit of its holding company, U.S.-based Colgate Palmolive Co., for a total consideration of Rs 59.89 crore.
The stock opened at Rs 1,275 and hit a low of Rs 1,227 on BSE. A combined 135,158 shares have changed hands on the counter till 1235 hours on BSE and NSE.
“The board of directors approved the sell and transfer, the whole of the Company’s division viz. Global Shared Services Organisation (GSSO) including all employees, assets, liabilities, etc. to Colgate Global Business Services Private Limited, a 100% subsidiary of its ultimate holding Company, Colgate Palmolive Company, U.S.A., by way of a slump sale for a total consideration of Rs 59.89 crore,” Colgate-Palmolive (India) said in a statement.
The deal amount has been arrived at on the basis of independent valuation conducted by Ernst & Young Pvt. Ltd, will be effective June 1, the company said in a notice to the stock exchanges.
Last month, the FMCG firm had sold the factory building situate at Hyderabad along with fixtures and fittings for a total consideration of Rs 1.60 crore.
Meanwhile, the stock has underperformed the market by falling 9% from its recent high of Rs 1,355 touched on March 5 on BSE compared to 2.4% drop in benchmark Sensex.
The stock opened at Rs 1,275 and hit a low of Rs 1,227 on BSE. A combined 135,158 shares have changed hands on the counter till 1235 hours on BSE and NSE.
“The board of directors approved the sell and transfer, the whole of the Company’s division viz. Global Shared Services Organisation (GSSO) including all employees, assets, liabilities, etc. to Colgate Global Business Services Private Limited, a 100% subsidiary of its ultimate holding Company, Colgate Palmolive Company, U.S.A., by way of a slump sale for a total consideration of Rs 59.89 crore,” Colgate-Palmolive (India) said in a statement.
The deal amount has been arrived at on the basis of independent valuation conducted by Ernst & Young Pvt. Ltd, will be effective June 1, the company said in a notice to the stock exchanges.
Last month, the FMCG firm had sold the factory building situate at Hyderabad along with fixtures and fittings for a total consideration of Rs 1.60 crore.
Meanwhile, the stock has underperformed the market by falling 9% from its recent high of Rs 1,355 touched on March 5 on BSE compared to 2.4% drop in benchmark Sensex.
