Isha Ambani, Executive Director of Reliance Retail Ventures Limited
Reliance -LOTUS: Reliance Consumer Products Limited is going to acquire 51% controlling stake in Lotus Chocolate company limited and make an open offer to acquire upto 26% the acquisiton to add confectionery product capabilities.
Mumbai, December 29, 2022: Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (“RRVL”), Lotus Chocolate Company Limited (“LOTUS”) and Mr. Prakash P Pai, Mr. Ananth P Pai & other members of the current promoter and promoter group of LOTUS, today executed definitive agreements, in terms of which the RCPL will acquire 65,48,935 equity shares of LOTUS representing 51% of the paid-up equity share capital of LOTUS from the current promoter and promoter group of LOTUS at a price per share of Rs. 113.00 aggregating to Rs. 74 crore.
Reliance -LOTUS: In terms of the agreement also the RCPL and certain promoter group entities of LOTUS are to subscribe to 5,07,93,200 non-cumulative redeemable preference shares of face value of Rs. 10 each at par. The parties have also executed a Shareholder’s agreement governing certain inter se rights and obligations.
Reliance -LOTUS: The RCPL would make a Public Announcement to the public shareholders of LOTUS to acquire up to 33,38,673 equity shares of LOTUS representing 26.00% of the equity share capital of LOTUS in accordance with the SEBI Takeover Regulations.
For the growth and expansion of LOTUS
The capital infused by RCPL will help drive the growth and expansion of LOTUS into a comprehensive confectionery, cocoa, chocolate derivatives and related products manufacturer across industrial and consumer market spectrum backed by state-of-the-art manufacturing, best in-class processes & people.
Isha Ambani made the announcement
Speaking on this transaction, Ms. Isha Ambani, Executive Director of Reliance Retail Ventures Limited, said, “Reliance is excited to partner with LOTUS who have created a strong Cocoa & chocolate derivatives business through sharp business acumen and perseverance.
For serving a broad customer spectrum
”The investment in LOTUS underlines our commitment to further boost indigenously developed daily use high quality products, to serve a broad customer spectrum at affordable prices. We look forward to working with the highly experienced management team of LOTUS as we further expand the business and drive its next growth phase,” Isha further added.
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Aiming at building a ‘world class confectionery products business
Mr. Abhijit Pai, Founder-Promoter of LOTUS, said, “We are delighted to enter into this partnership with Reliance. We have a vision to build a ‘world class confectionery products business across customer segments backed by best-in-class manufacturing capabilities and talent. Our strategic partnership with Reliance, through this investment, will further enable this vision and accelerate Lotus’ transformation.”
