Colgate-Palmolive purchases stake in company

Colgate-Palmolive has bought the remaining 25 per cent stake in SS Oral Hygiene.

The purchase at an aggregate price from local shareholders – for 7.77 million Indian rupees (106,350 pounds) – will see SS Oral merged with its parent company.

The scheme of amalgamation, which provides for the merger, follows consideration and approval by the Colgate-Palmolive board of directors.

It follows last year’s purchase of a 75 per cent stake in the company by Colgate-Palmolive for an undisclosed amount.

SS Oral’s entire equity share capital is set to be held by Colgate-Palmolive and so the entire equity share capital of the company will stand automatically cancelled.

Additionally, there will be no issue and allotment of shares pursuant to the scheme, the company’s filing added.

In other Colgate-Palmolive-related financial news, the organisation has been upgraded from “above average” to “buy” by Caris and Co.

The changing of the status is due to the company’s confidence of achieving its outlook for double-digit 2009 earnings growth, the brokerage firm commented.

Speaking in a note to clients, Caris and Co said that the fourth quarter of 2008 should be the most “challenging”, with fundamentals set to improve afterwards.