The wholly-owned FMCG subsidiary of Reliance Retail Ventures Limited (RRVL), Reliance Consumer Products Ltd (RCPL) said that it has completed the acquisition of a 51% controlling stake in Lotus Chocolate Company for Rs 74 crore on Thursday.
RCPL has also completed the acquisition of equity shares according to the open offer made under the Securities and Exchange Board of India (SEBI)’s takeover regulations.
Under the deal, first announced in December 2022, RCPL will acquire more than 65 lakh equity shares of LOTUS representing 51% of the paid-up share capital at a price per share of Rs 113.00 aggregating to Rs 74 crore.
The release from RRVL on Thursday added that RCPL also subscribed to 5,07,93,200 non-cumulative redeemable preference shares of Lotus with a face value of Rs 10 each for an aggregate consideration of Rs 25 crore.
According to RRVL, the money will be used to help Lotus develop into a fully-fledged confectionery, cocoa, chocolate derivatives, and associated products maker for both industrial and consumer markets, supported by cutting-edge personnel, processes, and manufacturing.
RRVL operates an integrated omnichannel network of 18,040 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets, according to the release, and has partnered with over three million merchants through its New Commerce initiative.
As the parent company for all retail operations within the RIL group and a subsidiary of Reliance Industries Ltd (RIL), RRVL has progressively expanded its array of FMCG products, which currently includes everything from beverages to household essentials.
In addition to its brands, such as Independence and Good Life, it also carries Sosyo Hajoori, Maliban, the cookie brand from Sri Lanka, as well as the new confectionery line from Lotus Chocolates.
Lotus Chocolates, listed on the BSE, is trading at Rs 152.40, 5% higher than the previous closing price.