Reliance Consumer Products completes acquisition of controlling stake in Lotus Chocolate
Reliance Consumer Products (RCPL), fast-moving consumer goods arm of Reliance Retail Ventures (RRVL), has completed the acquisition of 51 per cent controlling stake in Lotus Chocolate Company for an aggregate consideration of Rs 74 crore.
Reliance Consumer Products (RCPL), fast-moving consumer goods arm of Reliance Retail Ventures (RRVL), has completed the acquisition of 51 per cent controlling stake in Lotus Chocolate Company for an aggregate consideration of Rs 74 crore.
According to a release from Reliance Retail Ventures on Thursday, RCPL has also subscribed to non-cumulative redeemable preference shares of Lotus for an aggregate consideration of Rs 25 crore.
RCPL has also completed the acquisition of equity shares pursuant to the open offer made under the Securities and Exchange Board of India (SEBI)'s takeover regulations. RCPL has taken sole control of LOTUS with effect from Wednesday, the release said.
It said Reliance Retail Ventures reported a consolidated turnover of Rs 260,364 crore and a net profit of Rs 9,181 crore for the year ended March 31, 2023.
RRVL is a subsidiary of Reliance Industries Ltd and the holding company of all the retail businesses under the RIL group.
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of 18,040 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle and pharma consumption baskets and has partnered with over three million merchants through its New Commerce initiative, the release said.
Its FMCG subsidiary -- Reliance Consumer Products -- aims to provide a wide range of products under a versatile brand portfolio that serve the daily needs of millions of Indians, it said. Listed on BSE stock exchange, Lotus is one of India's select manufacturers of the chocolates, cocoa products and cocoa derivatives, the release said.
Reliance Retail had said in December last year that RCPL will acquire 51 pc controlling stake in Lotus Chocolate Company Limited and make an open offer to acquire up to 26 per cent stake.
It had said RCPL will acquire 65,48,935 equity shares of LOTUS representing 51 per cent of the paid-up equity share capital of the company from the current promoter and promoter group of Lotus at a price per share of Rs. 113.00 aggregating to Rs 74 crore.
It also said that RCPL and certain promoter group entities of LOTUS will subscribe to 5,07,93,200 non-cumulative redeemable preference shares of face value of Rs 10 each at par.
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