Reliance to acquire majority stake in Lotus Chocolate

Reliance Consumer Products Ltd (RPCL), the fast-moving consumer goods arm of Reliance Industries Ltd, will acquire a controlling stake in Lotus Chocolate.

According to PTI, RCPL has entered into an agreement with the promoters of Lotus Chocolate, which manufactures chocolates, cocoa products, and cocoa derivatives.

As part of the share purchase agreement, RCPL proposes to acquire 77% of the paid-up share capital of Lotus Chocolate through a "secondary purchase" from promoters Prakash Peraje Pai and Ananth Peraje Pai, followed by an open offer.

"RCPL will acquire 65.48 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 113.00 aggregating to Rs 74 crore," said a joint statement.

"RCPL and certain promoter group entities of LOTUS to subscribe to 5.07 crore non-cumulative redeemable preference shares of face value of Rs 10 each," the statement added.

RRVL Executive Director Isha Ambani said, "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."

Founder-Promoter of Lotus Chocolate, Abhijit Pai said, "Our strategic partnership with Reliance, through this investment, will further enable this vision and accelerate Lotus' transformation."

Earlier, in a regulatory filing, Lotus Chocolate said a shareholders agreement (SHA) has been executed between RCPL and members of the promoter and promoter group, namely Prakash Peraje Pai, Ananth Peraje Pai, Poornima Pai, Nivedita Pai, Ashwini Pai, Abhijeet Pai, Aman Paiand and Aditya Pai.

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