Reliance Retail arm acquires 51% stake in Lotus Chocolate for ₹74 cr


Reliance Retail Ventures Ltd’s subsidiary on Thursday said that it has acquired 51 per cent controlling stake in Lotus Chocolate Company.

The FMCG arm, Reliance Consumer Products Limited, is the wholly owned subsidiary of Reliance Retail Ventures Limited has acquired Lotus Chocolate company from Prakash P Pai, Ananth P Pai and other members of the current promoter and promoter group of the company for 74 crore.

“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,” said Reliance Retail in its regulatory filing.

It has also announced an open offer to the public shareholders of Lotus for 26 per cent.

“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 filing added.

The capital infused 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.

“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,” said Isha Ambani, Executive Director of Reliance Retail Ventures Limited.

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

Reliance Retail reported 36 per cent jump in its consolidated net profit for the September quarter to 2,305 crore. The Mukesh Ambani-owned retail chain’s gross quarterly revenue was at 64,920 crore, higher by 42.9 per cent YoY. Reliance Retail’s posted a record EBITDA which shot up by 51.2 per cent YoY to 4,404 crore.



Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link