Reliance Consumer Products Limited, A Wholly-owned Subsidiary Of Reliance Retail Ventures Limited, To Acquire 51% Controlling Stake In Lotus Chocolate Company Limited And Make An Open Offer To Acquire Upto 26%


Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary of Reliance  Retail Ventures Limited (“RRVL”), Lotus Chocolate Company Limited (“LOTUS”) and Mr. Prakash P Pai, Mr.  Ananth P Pai & other members of the current promoter and promoter group of LOTUS, today executed  definitive agreements, in terms of which:

a) RCPL will acquire 65,48,935 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. 113.00 aggregating to Rs. 74 crore;

b) RCPL and certain promoter group entities of LOTUS to subscribe to 5,07,93,200 non-cumulative  redeemable preference shares of face value of Rs. 10 each at par;

The parties have also executed a Shareholder’s agreement governing certain inter se rights and  obligations.

RCPL would make a Public Announcement to the public shareholders of LOTUS to acquire up to 33,38,673  equity shares of LOTUS representing 26.00% of the equity share capital of LOTUS in accordance with the SEBI Takeover Regulations.

The capital infused by RCPL will help drive the growth and expansion of LOTUS into a comprehensive  confectionery, cocoa, chocolate derivatives and related products manufacturer across industrial and  consumer market spectrum backed by state-of-the-art manufacturing, best in-class processes & people.

Speaking on this transaction, Ms. Isha Ambani, Executive Director of Reliance Retail Ventures Limited,  said, “Reliance is excited to partner with LOTUS who have created a strong Cocoa & chocolate derivatives  business through sharp business acumen and perseverance. The investment in LOTUS underlines our  commitment to further boost indigenously developed daily use high quality products, to serve a broad  customer spectrum at affordable prices. 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.”

Mr. Abhijit Pai, Founder-Promoter of LOTUS, said, “We are delighted to enter into this partnership with  Reliance. We have a vision to build a ‘world class confectionery products business across customer  segments backed by best-in-class manufacturing capabilities and talent. Our strategic partnership with  Reliance, through this investment, will further enable this vision and accelerate Lotus’ transformation.”