Reliance Consumer Products Ltd. will acquire 65,48,935 equity shares of Lotus representing 51% of the paid-up equity share capital from the current promoter and promoter group of Lotus at a price per share of Rs. 113.00 aggregating to Rs. 74 crore
Delhi: Reliance Consumer Products Ltd. (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Ltd. (RRVL), is set to acquire a 51% controlling stake in Lotus Chocolate Company, and has already made an open offer to acquire upto 26% stake in the company.
According to a definitive agreement signed by both companies, RCPL will acquire 65,48,935 equity shares of Lotus representing 51% of the paid-up equity share capital from the current promoter and promoter group of Lotus at a price per share of Rs. 113.00 aggregating to Rs. 74 crore. The agreement has the buy-in from Lotus Chocolate promoters Prakash P Pai, Ananth P Pai, and other members of the promoter group.
The parties have also executed a shareholder’s agreement governing certain inter-se 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 in accordance with 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 industrial and consumer market spectrum backed by state-of-the-art manufacturing, best in-class processes and people.
Speaking on the transaction, Isha Ambani, executive director of Reliance Retail Ventures Ltd., said, “Reliance is excited to partner with Lotus who have created a strong cocoa and chocolate derivatives business through sharp business acumen and perseverance. 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.”
Abhijit Pai, Founder-Promoter of 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.”
