![Reliance Consumer Products to acquire 51% controlling stake in Lotus Chocolate Company](http://media.assettype.com/foodtechbiz%2F2023-01%2F9ea57e47-4a7a-4c6e-95c8-24f9147d7be4%2FWhatsApp_Image_2023_01_04_at_13_52_21.jpeg?w=480&auto=format%2Ccompress&fit=max)
Reliance Consumer Products (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures (RRVL), Lotus Chocolate Company (LOTUS) and Prakash P Pai, Ananth P Pai & other members of the current promoter and promoter group of LOTUS, executed definitive agreements, in terms of which:
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 crores;
RCPL and certain promoter group entities of LOTUS to subscribe to 5,07,93,200 noncumulative redeemable preference shares of the face value of Rs. 10 each at par;
The parties have also executed a Shareholder’s agreement governing certain inter rights and obligations.
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 following the SEBI Takeover Regulations.
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 the industrial and consumer market spectrum backed by state-of-the-art manufacturing, best-in-class processes and people.
Speaking on this transaction, Isha Ambani, executive director, Reliance Retail Ventures, said, “Reliance is excited to partner with LOTUS, who have created a strong Cocoa & chocolate derivatives business through sharp business acumen and perseverance. The investment in LOTUS underlines our commitment to further boosting indigenously developed daily use of high-quality products, to serve a broad customer spectrum at affordable prices. We look forward to working with highly experienced management team of LOTUS as we further expand the business and drive its next growth phase.”
Abhijit Pai, founder and promoter, LOTUS, said, “We are delighted to enter into this partnership with Reliance. We have the 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.”
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