Reliance Retail to acquire majority stake in Lotus Chocolate Company, to make open offer to buy up to 26% more

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On December 29, the retail unit of Reliance Industries, Reliance Retail Ventures Limited (RRVL) said that its wholly-owned FMCG subsidiary Reliance Consumer Products Limited (RCPL) will purchase a 51 percent majority stake in Lotus Chocolate Company Limited.

Additionally, RCPL will also make an open offer to buy up to 26 percent stake.

According to a statement issues by the company, RCPL will acquire 6.5 lakh equity shares of Lotus Chocolate Company at a price per share of Rs 113 aggregating to Rs 74 crore. Along with that, the RIL-subsidiary and certain promoter group entities of Lotus will subscribe to over five crore non-cumulative redeemable preference shares with a face value of Rs 10 each at par.

Moreover, RCPL would make an open offer to the public shareholders of Lotus to acquire up to 33,38,673 equity shares of Lotus representing 26 percent of the equity share capital in accordance with the ‘SEBI Takeover Regulations.’

In a statement, the company said, “The parties have also executed a Shareholder’s agreement governing certain inter se rights and obligations,”