NEW DELHI: The retail arm of Reliance Industries has acquired 51% controlling stake in Lotus Chocolate Company, RIL said in an official release on Thursday.
"Reliance Consumer Products Limited (RCPL), a wholly-owned subsidiary of Reliance Retail Ventures Limited, has announced that it will acquire 51% of the paid-up equity share capital of Lotus Chocolate Company Limited (LOTUS) from the current promoter group at a price per share of Rs 113," the statement said.
As part of the deal, RCPL will acquire over 65 lakh equity shares of LOTUS, representing 51% of the paid-up equity share capital of LOTUS from the current promoter and promoter group at a price per share of Rs 113 aggregating to Rs 74 crore, the release added.
In addition, RCPL will make a public announcement to acquire up to 26% of the equity share capital of LOTUS in accordance with the Securities and Exchange Board of India's Takeover Regulations.
The capital infusion will be used to drive the growth and expansion of LOTUS into a comprehensive confectionery, cocoa, chocolate derivatives and related products manufacturer across industrial and consumer markets, RIL said.
Isha Ambani, executive director of Reliance Retail Ventures Limited, said that the investment in LOTUS underscores the company's commitment to boosting the production of high-quality, locally developed daily-use products that are affordable for a broad customer base at affordable prices.
The parties have also executed a shareholder’s agreement governing certain inter se rights and obligations.
Abhijit Pai, founder-promoter of LOTUS, said that the strategic partnership with Reliance will enable the company to accelerate its transformation into a "world class confectionery products business across customer segments backed by best-in-class manufacturing capabilities and talent."
