Reliance Consumer Products (RCPL) has finished off the acquisition of a 51% stake in Lotus Chocolate for an aggregate consideration of Rs. 74 crores in Lotus Chocolate Company Ltd. The acquisition subscribed to non-cumulative redeemable preference shares of Lotus for an aggregate consideration of Rs. 25 crores.
RCPL has also concluded the acquisition of equity shares pursuant to the open offer made under the SEBI Takeover Regulations. RCPL took sole control of the company with effect from May 24, 2023, it said in its statement.
In late December, RCPL said it would acquire 51% of Lotus Chocolate Company for Rs. 74 crore and would also buy another 26% in an open offer. The capital infused by the FMCG arm of Reliance Industries will help drive the growth and expansion of Lotus into a comprehensive confectionery, cocoa, chocolate derivatives, and related products manufacturer across the industrial and consumer market spectrum.
Isha Ambani, the executive director of Reliance Retail, stated that the investment in Lotus underlines their commitment to further boost indigenously developed high-quality products for daily use to serve a broad customer spectrum at affordable prices.