Colgate-Palmolive (India) has announced that it is selling it unit, Global Shared Services Organisation (GSSO) to a group firm, Colgate Global Business Services Private Limited for a consideration of Rs 59.89 crore thorugh slump sale.

GSSO is a unit of Colgate-Palmolive (India) and Colgate Global Business Services Private Limited is a wholly owned subsidiary of the prime holding company, Colgate Palmolive Company, USA. The company informed the stock exchanges that the value of the firm was determined after an independent valuation conducted by Ernst & Young. The transfer of the company will come into effect from 1 June, 2013.

"The board of directors approved the sell and transfer, the whole of the Company's division viz. Global Shared Services Organisation 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 shares of Colgate-Palmolive (India) fell 3 per cent and were trading at Rs. 1,239 after the company said that it is selling its unit to another group firm for a consideration. The shares had opened at Rs. 1,275 and hit a low of Rs 1,227 on the Bombay Stock Exchange (BSE).