Consumer Durables News

Reliance Consumer acquires 51% controlling stake in Lotus Chocolate

Lotus Chocolate Company Limited (LOTUS) and Prakash P Pai, Ananth P Pai, and other members of LOTUS’s current promoter and promoter group executed definitive agreements with Reliance Consumer Products Limited, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited.

As per the terms of the agreement, RCPL will acquire 65,48,935 equity shares of LOTUS, representing 51% of LOTUS’s paid-up equity share capital, from the current promoter and promoter group for Rs113 per share, for an aggregate amount of Rs74 crore.

RCPL and certain LOTUS promoter group entities will subscribe at par to 5,07,93,200 non-cumulative redeemable preference shares with a face value of Rs10 each.

A shareholder’s agreement governing certain inter se rights and obligations has also been executed by the parties.

In accordance with the SEBI Takeover Regulations, 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% of LOTUS’s equity share capital.

The capital infusion from RCPL will aid in the growth and expansion of LOTUS into a comprehensive confectionery, cocoa, chocolate derivatives, and related product manufacturer across the industrial and consumer market spectrum. This will be supported by cutting-edge manufacturing, best-in-class processes, and people.

Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Ltd and the holding company for all of RIL’s retail businesses.

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