Reliance Consumer Products Limited, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited, Lotus Chocolate Company Limited, and Prakash P Pai, Ananth P Pai, and other members of the current promoter and promoter group of LOTUS, today executed definitive agreements, in terms of which:
RCPL will acquire 65,48,935 equity shares of LOTUS representing 51 percent of the paid-up equity share capital of LOTUS from the current promoter and promoter group of LOTUS at a price per share of Rs 113.00 aggregating to Rs 74 crore. RCPL and certain promoter group entities of LOTUS to subscribe to 5,07,93,200 noncumulative redeemable preference shares of the face value of Rs. 10 each at par; The parties have also executed a Shareholder’s agreement governing certain inter 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 percent 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 the industrial and consumer market spectrum backed by state-of-the-art manufacturing, best-in-class processes, and people.
Isha Ambani, Executive Director of Reliance Retail Ventures Limited, 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 boosting indigenously developed daily use of 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.”