Lotus Chocolate will be acquired by Reliance Consumer Products Ltd (RPCL), the fast-moving consumer goods arm of Reliance Industries Ltd.
According to PTI, RCPL has reached an agreement with the promoters of Lotus Chocolate, a company that produces chocolates, cocoa products, and cocoa derivatives.
As part of the share purchase agreement, RCPL proposes to acquire 77% of Lotus Chocolate’s paid-up share capital through a “secondary purchase” from Lotus Chocolate promoters Prakash Peraje Pai and Ananth Peraje Pai, followed by an open offer.
“RCPL will acquire 65.48 lakh equity shares of LOTUS from the current promoter and promoter group, representing 51% of LOTUS’s paid-up equity share capital… “at a price per share of Rs 113.00, amounting to Rs 74 crore,” according to a joint statement.
“RCPL and certain LOTUS promoter group entities to subscribe to 5.07 crore non-cumulative redeemable preference shares of face value Rs 10 each,” according to the statement.
“The investment in LOTUS underscores our commitment to further boost indigenously developed daily use high quality products to serve a broad customer spectrum at affordable prices,” said RRVL Executive Director Isha Ambani. We are excited to collaborate with LOTUS’s highly experienced management team as we expand the business and drive its next growth phase.”
“Our strategic partnership with Reliance, through this investment, will further enable this vision and accelerate Lotus’ transformation,” said Abhijit Pai, Founder-Promoter of Lotus Chocolate.
Lotus Chocolate previously stated in a regulatory filing that a shareholders agreement (SHA) had 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.
