Reliance to acquire controlling stake in Lotus Chocolate
- ByStartupStory | December 30, 2022
On Thursday, Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited, announced the acquisition of a 51% controlling stake in Lotus Chocolate.
On Thursday, RCPL, Lotus Chocolate Company Limited, Prakash P Pai, Ananth P Pai, and other members of Lotus’ present promoter and promoter group signed definitive agreements. These are the agreement’s conditions:
a) The current promoter and promoter group of Lotus will sell 65,48,935 equity shares to RCPL for Rs. 113.00 per share, or Rs. 74 crore, representing 51% of the paid-up equity share capital of Lotus;
b) The purchase of 5,07,93,200 noncumulative redeemable preference shares with a face value of Rs. 10 each by RCPL and a few LOTUS promoter group firms at par;
Additionally, RCPL would extend an open offer to purchase up to 26% more Lotus Chocolate.
Reliance Retail in a statement said, “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.”
“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 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 Ambani, Executive Director of Reliance Retail Ventures Limited, said.
While Founder-Promoter of LOTUS, Abhijit Pai 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.”
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