Business News | Reliance Consumer Products to Acquire 51 Pc Stake in Lotus Chocolate Company
Get latest articles and stories on Business at LatestLY. Reliance Retail Ventures Limited subsidiary on Thursday said that it has acquired 51 per cent controlling stake in Lotus Chocolate Company.
Mumbai (Maharashtra) [India], December 29 (ANI): Reliance Consumer Products Ltd (RCPL), a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), will acquire 51 pc controlling stake in Lotus Chocolate Company Limited and make an open offer to acquire up to 26 per cent stake.
RCPL will acquire 65,48,935 equity shares of LOTUS representing 51 per cent of the paid-up equity share capital of the company from the current promoter and promoter group of Lotus at a price per share of Rs. 113.00 aggregating to Rs. 74 crore.
A Reliance Retail release said that RCPL and certain promoter group entities of LOTUS will subscribe to 5,07,93,200 non-cumulative redeemable preference shares of face value of Rs 10 each at par.
RCPL, RRVL, Lotus Chocolate Company Limited (LOTUS) and Prakash P Pai, Ananth P Pai and other members of the current promoter and promoter group of LOTUS executed definitive agreements on Thursday.
The release said that the parties have also executed a shareholder's agreement governing certain inter se rights and obligations.
"RCPL would make a public announcement to the public shareholders of LOTUS to acquire up to 33,38,673 equity shares representing 26 per cent of the equity share capital of LOTUS in accordance with the SEBI Takeover Regulations," the release said.
It 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 and people".
Speaking about the transaction, 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 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 they 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," he said.
RRVL is a subsidiary of Reliance Industries Ltd and the holding company of all the retail businesses under the RIL group.
RRVL, through its subsidiaries and affiliates, operates more than 16,500 own stores and partners with over two million merchants across grocery, electronics, apparel, pharmacy, lingerie, home and furnishing, beauty and personal care. It also operates the largest network of omni-channel business through Jio Mart, Ajio, Netmeds, Zivame and other online channels. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)