On Thursday, Reliance Retail Ventures Ltd (RRVL) announced that its subsidiary had successfully acquired a 51% controlling position in Lotus Chocolate, a producer of chocolates, cocoa goods, and derivatives of cocoa.
Reliance Consumer Products Ltd. (RCPL), a step-down FMCG subsidiary, “has taken sole control of Lotus with effect from May 24, 2023,” according to a company statement.
Reliance Retail stated in December of last year that it will buy a majority share in Lotus Chocolate.
According to the terms of the share purchase agreement, RCPL proposed buying Lotus Chocolate’s promoters Prakash Peraje Pai and Ananth Peraje Pai’s “secondary purchase” for 77% of the company’s paid-up share capital, followed by an open bid.
From the promoter, the Pai family, it has “completed the acquisition of 51% controlling stake in Lotus for an aggregate consideration of Rs 74 crore.”
Additionally, it “completed the acquisition of equity shares pursuant to the open offer made under Sebi Takeover Regulations”.
Following RCPL’s declaration last week to purchase 51% of the paid-up equity share capital of Lotus from the present promoter and promoter group at a price per share of Rs 113, totaling Rs 74 crore, the open offer was triggered.
Following that, RCPL announced publicly that it will comply with Sebi Takeover Regulations by acquiring an additional 26% of Lotus’ equity share capital.
Reliance Industries, managed by Mukesh Ambani, has a subsidiary called RRVL, which serves as the holding company for all of the retail operations in the RIL group.