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US major Procter & Gamble Company plans to increase its stake in the Indian arm, which sells brands like Vicks Vaporub, to 71 per cent by purchasing 2.65 per cent equity of P&G Hygiene and Healthcare.
In its meeting held on May 22, the Foreign Investment Promotion Board is believed to have permitted P&G Company to either on its own or through its subsidiary called Rosemount Corporation, acquire up to 573,000 equity shares of PGHHCL, sources said in New Delhi on Tuesday.
This acquisition could either be via outright purchase from Overseas Corporate Bodies or by merger of these OCBs into Rosemount Corporation.
After this transaction, the equity holding of P&G Company USA along with its subsidiary Rosemount Corporation in PGHHCL will increase from 68.35 per cent to 71 per cent.
The proposal the US major submitted before the FIPB was supported by board resolutions of PGHHCL as well as a declaration under Press Note 18 from Rosemount Corporation.