The Singapore-based Colgate-Palmolive (Asia) Pte has proposed to acquire a 12 per cent stake in Colgate-Palmolive (India) Ltd from parent Colgate-Palmolive Company USA.
Colgate-Palmolive (Asia) Pte on Thursday informed the National Stock Exchange that would acquire 1.65 crore (16.5 million) shares, constituting approximately 12 per cent of the equity share capital of Colgate-Palmolive (India), from Colgate-Palmolive Company USA at the prevailing market price. The date of the proposed acquisition is on or after August 18, 2005.
A media statement from Colgate Palmolive (India) said: "Colgate Palmolive USA plans to make no change to its consolidated holding of Colgate-Palmolive India which will remain at its current 51 per cent. Any potential transfer of its interest would simply represent an internal organisational change". This is because Colgate-Palmolive Asia (Pte) is a wholly-owned subsidiary of the parent company and the proposed transaction will be an inter-promoter transfer.
Apart from being an investment arm of Colgate-Palmolive Company USA, the Singapore subsidiary also undertakes marketing and sale of consumer goods.
Currently, foreign promoter Colgate-Palmolive Company US holds a 51 per cent stake in Colgate-Palmolive India, and institutional investors hold 18.07 per cent.
Of the remaining 30.92 per cent, private corporate bodies hold 1.91 per cent, Indian public holds 28.76 per cent and non-resident Indians/overseas corporate bodies 0.25 per cent.
Total foreign shareholding (including GDR) adds up to 7.62 crore (76.2 million) equity shares, representing 56.08 per cent of the total paid-up equity capital of the company.
Colgate-Palmolive leads the Rs 2,000 crore (Rs 20 billion) toothpaste market with a share in excess of 50 per cent. The company posted a 5 per cent increase in its net profit at Rs 113.29 crore (Rs 1.13 billion) for the year ended 31 March 2005 compared with Rs 108 crore (Rs 1.08 billion) for the year ended 31 March 2004. Total revenue for the year grew by 3 per cent at Rs 998.45 crore (Rs 9.98 billion) against Rs 969.11 crore (Rs 9.69 billion) in the previous year.For the quarter ended 30 June 2005, the company's net profit jumped 9.98 per cent at Rs 27.98 crore (Rs 279.8 million), up from Rs 25.44 crore (Rs 254 million) in the year-ago period. Total revenue increased 8.32 per cent to Rs 268.90 crore (Rs 2.69 billion) for the quarter ended June 30, 2005, from Rs 248.23 crore (Rs 2.48 billion) in the year-ago period.