Reliance to acquire 51% controlling stake in Lotus Chocolate Company

Lotus Chocolate Company Limited (“LOTUS”), Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (“RRVL”), 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: Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary

a)RCPL will buy 65,48,935 equity shares of LOTUS, representing 51% of the paid-up equity share capital of LOTUS, from the existing promoter and promoter group of LOTUS at a price per share of Rs. 113.00, bringing the total to Rs. 74 crores;

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

The parties have also agreed to the terms of a Shareholder’s agreement, which governs some rights and duties that are shared between them.

In compliance with the SEBI Takeover Regulations, RCPL would publish a Public Announcement to the public shareholders of LOTUS to inform them of its intention to buy up to 33,38,673 equity shares of LOTUS, which would represent 26.00% of the company’s total equity share capital.

The investment of capital by RCPL will assist in driving the growth and expansion of LOTUS into a comprehensive confectionery, cocoa, chocolate derivatives, and related product manufacturer across the industrial and consumer market spectrum. This endeavor will be supported by state-of-the-art manufacturing, best-in-class processes, and exceptional people.

Isha Ambani, Executive Director of Reliance Retail Ventures Limited, made the following statement on this transaction: “Reliance is thrilled to work with LOTUS who have developed a strong Cocoa & chocolate derivatives company through keen commercial acumen and tenacity.” The investment in LOTUS highlights our commitment to further increasing indigenously designed goods of high quality for everyday use, to cater to a diverse range of customers at costs that are within their financial means. We are excited about the opportunity to collaborate with LOTUS’s highly experienced management team as we continue to build the company and usher in its next chapter of expansion.

“We are thrilled to join into this cooperation with Reliance,” stated Mr. Abhijit Pai, the Founder-Promoter of LOTUS. Our goal is to establish a confectionary products company that is “world-class” across all client segments, supported by best-in-class production capabilities and personnel. This investment, which is the result of our strategic cooperation with Reliance, will further allow this goal and expedite Lotus’ transformation.

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