NEW DELHI: Weeks after announcing its major foray into the FMCG business, Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited RRVL), on Thursday announced acquiring a 51% controlling stake in Lotus Chocolate Company Limited (LOTUS).
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 of LOTUS at a price per share of Rs 113 aggregating to Rs 74 crore. As part of the deal, RCPL and certain promoter group entities of LOTUS will subscribe to 5.07 crore non-cumulative redeemable preference shares of face value of Rs 10 each at par.
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% of the equity share capital of LOTUS in accordance with the SEBI Takeover Regulations. Isha Ambani, executive director of RRVL, said, “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.”
Lotus Chocolate Company shares hit its upper circuit of 5% on Thursday to close at Rs 117.10 a piece. In the last 5 sessions, the stock has gained about 19% on the BSE. Reliance Industries Ltd’s (RIL) retail arm had last week signed definitive agreements to acquire 100% equity stake in METRO Cash & Carry India for a total cash consideration of Rs 2,850 crore. Earlier this month, Reliance Group had launched its fast-moving consumer goods (FMCG) brand “Independence” in Gujarat with plans to expand pan-India.