Reliance Retail's arm acquires 51% stake in Lotus Chocolate for Rs 74 cr

Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited, said on Thursday it will acquire 51% controlling stake in Lotus Chocolate.

RCPL, Lotus Chocolate Company Limited and Prakash P Pai, Ananth P Pai and other members of the current promoter and promoter group of Lotus on Thursday executed definitive agreements. Here are the terms of the deal

a) RCPL will acquire 65,48,935 equity shares of LOTUS representing 51% 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;

b) RCPL and certain promoter group entities of LOTUS to subscribe to 5,07,93,200 noncumulative redeemable preference shares of face value of Rs. 10 each at par;

RCPL would also make an open offer to acquire up to 26% more of Lotus Chocolate.

"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," said Reliance Retail in a statement.

Isha Ambani, Executive Director of Reliance Retail Ventures Limited, said: “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.”