For Rs 74 crore, Reliance Consumer Products Limited (RCPL), a fully owned subsidiary of Reliance Retail Ventures Limited (RRVL), would purchase a controlling 51% interest in Lotus Chocolate Company (Lotus), with an open offer to purchase up to a further 26%.
According to a company announcement, RCPL will purchase 65,48,935 equity shares of LOTUS from the current proprietor and promoter group for an amount totaling Rs. 74 crores. These shares constitute 51 percent of the paid-up equity share capital of LOTUS.
Additionally, RCPL and a few Lotus promoter group companies have committed to purchase 5,07,93,200 noncumulative redeemable preference shares at par, each with a face value of Rs 10.
In compliance with the SEBI Takeover Regulations, RCPL will publicly notify Lotus’s public shareholders of its intention to buy up to 33,38,673 equity shares, or 26.00% of Lotus’s equity share capital.
“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,” statement added.
Isha Ambani, executive director of Reliance Retail Ventures said, “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, “Our strategic partnership with Reliance, through this investment, will further enable this vision and accelerate Lotus’ transformation”.
