Mumbai: Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (“RRVL”), Lotus Chocolate  Company Limited (“LOTUS”) and Mr. Prakash P Pai, Mr. Ananth P Pai & other members of the  current promoter and promoter group of LOTUS, today executed definitive agreements, in  terms of which: 

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 non cumulative redeemable preference shares of face value of Rs. 10 each at par; 

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 of LOTUS representing 26.00% 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 industrial and consumer market spectrum backed by state-of-the-art manufacturing, best  in-class processes & people.  

Speaking on this transaction, Ms. 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.” 

Mr. Abhijit Pai, Founder-Promoter of LOTUS, said, “We 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.”

 

 

   

 

DeshGujarat

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