Reliance Consumer Products acquires 51% stake in Lotus Chocolate Company
Reliance Consumer Products Limited (RCPL) has completed the previously announced acquisition of a 51% controlling stake in Lotus Chocolate Company Limited for a total consideration of INR 74 crores.
In addition, the fast-moving consumer goods (FMCG) arm and fully-owned subsidiary of Reliance Retail Ventures Limited (RRVL) has subscribed to non-cumulative redeemable preference shares of Lotus Chocolate Company, amounting to INR 25 crores.
Moreover, Reliance Consumer Products has concluded the acquisition of equity shares in accordance with SEBI Takeover Regulations through an open offer. As of 24 May 2023, Reliance Consumer Products has assumed sole control of Lotus Chocolate Company, consolidating its position and authority in the company.
The deal was announced in December 2022 under which Reliance Retail Ventures’ subsidiary acquired 6.5 million equity shares of Lotus Chocolate Company from the promoter and promoter group at a price of INR 113 per share.
Reliance Consumer Products and certain promoter group entities of Lotus Chocolate Company also subscribed to over five million noncumulative redeemable preference shares of the latter at a face value of INR 10 each at par.
Listed on the BSE stock exchange, Lotus Chocolate Company is an Indian manufacturer of chocolates, cocoa products, and cocoa derivatives.