In Reliance’s FMCG Company Lotus Chocolate, Rs. 74 Crore will Acquire The Controlling Stake
January 14, 2023: Reliance Consumer Products Limited, the FMCG arm of Reliance Industries Limited, has acquired 51 per cent stake in Lotus Chocolates for Rs. 74 crore and will make an open offer to buy the other 26 per cent.
The deal will help further the growth and expansion of Lotus as a manufacturer of confectionery, cocoa, chocolate derivatives and related products across the industrial and consumer market spectrum, Reliance said in a statement.
As part of the share purchase agreement, Reliance Consumer proposed to acquire 77 per cent of the paid-up share capital of Lotus Chocolate from promoters Prakash Paraje Pai and Anant Paraje Pai through a “secondary purchase”, followed by an open offer.
In its regulatory filing, Lotus Chocolate said that a shareholders agreement (SHA) has been entered into between RCPL and the promoter and members of the promoter group, namely Prakash Paraje Pai, Anant Paraje Pai, Purnima Pai, Nivedita Pai, Ashwini Pai, Abhijit Pai, Aman. Payand and Aditya Pai.
Lotus Chocolate said its board has approved the implementation of the SHA which will come into effect from the closing date specified in the share purchase agreement (SPA) entered into between RCPL and the promoters, namely Prakash Paraje Pai and Anant Paraje Pai.
As per the agreement, Prakash Paraje Pai and Anant Paraje Pai – who jointly hold 57 per cent stake in Lotus Chocolate in the quarter ended September 2022 – proposed to sell the company’s equity shares to RCPL.
“The transaction contemplated under the SPA and SHA has also triggered an obligation on RCPL to make an open offer to the public shareholders of the company…,” it said.
RCPL is the FMCG arm and subsidiary of Reliance Retail Ventures Limited (RRVL), the country’s leading retailing company.
RCPL aspires to be a relevant player in the FMCG segment. It launched its consumer packaged goods brand ‘Independence’ earlier this month.
RRVL director Isha Ambani announced the launch of its FMCG goods business during Reliance Industries’ AGM on August 29.
Under the ‘Swatanrata’ brand, the company will offer a range of products across categories including staples, processed foods and other daily essentials.
RRVL is the holding company of all retail businesses under Reliance Industries, headed by billionaire Mukesh Ambani. RRVL, through its subsidiaries and affiliates, operates 16,500 stores and partners with over 20 lakh merchants.
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