Reliance to acquire 51% controlling stake in Lotus Chocolate Company.

Reliance to acquire 51% controlling stake in Lotus Chocolate Company.

Currently, Reliance Consumer Products Limited the FMCG of RRVL and a wholly-owned subsidiary of RRVL, Lotus Chocolate co, Ltd and Mr. Ananth P Pai, Mr. Prakash P Pai, and remaining other members of the present promoter and group of promoters of LOTUS all executed definitive agreements, the terms of which include the following:

a) Reliance Consumer Products Limited will buy 65,48,935 equity shares of LOTUS, constituting paid-up equity share capital of 51% of LOTUS, from the existing promoter & promoter group of LOTUS at a per-share price of Rs. 113.00, bringing the total to Rs. 74 crores;

b) Reliance Consumer Products Limited and certain promoter group companies of LOTUS will subscribe non-cumulative redeemable preference shares for 5,07,93,200 of LOTUS with a face value of Rs. 10 each at par;

The parties have also agreed to the terms of a Shareholder’s agreement, which governs some rights and obligations that are shared between them.

In compliance with the Takeover Regulations of SEBI, Reliance Consumer Products Limited would publish a Public Statement to the shareholders of LOTUS to inform them of its intention to buy approximately 33,38,673 equity shares of LOTUS, which would represent 26.00% of the company’s total equity share capital.

The capital investment by RCPL will assist in driving the expansion and growth of LOTUS into a thorough cocoa, confectionery, chocolate derivatives, and related product manufacturer across the industrial and consumer market spectrum. State-of-the-art manufacturing, best-in-class processes, and exceptional people will support this endeavor.

Executive Director of Reliance Retail Ventures Limited, Ms. Isha Ambani, stated on this transaction that Reliance is thrilled to work with LOTUS, who has developed a robust Cocoa & chocolate derivatives company through keen commercial understanding and perseverance. Investing in LOTUS demonstrates their dedication their commitment to supporting Indian-designed, high-quality products for daily usage in order to serve a diverse client base at reasonable pricing. She adds that she is thrilled to work with LOTUS’s highly seasoned leadership team as they grow the company and drive the next phase of growth.

The Founder and Promoter of LOTUS, Mr. Abhijit Pai, stated that they are overjoyed to get into this cooperation with Reliance. They have the goal of building a confectionary products business that is “world-class” across all customer segments, supported by best-in-class production capabilities and personnel. He went on to say that the strategic alliance with Reliance that Lotus will enter into as a result of this investment will further allow this goal and accelerate the company’s transformation.

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