Reliance Consumer Products Ltd (RCPL), the FMCG division and a wholly-owned subsidiary of Reliance Retail Ventures Ltd (RRVL), announced on Thursday, December 29, that it has acquired a 51 percent stake in Lotus Chocolate Company Limited for an estimated total of Rs 74 crore. RCPL has acquired Lotus Chocolate from Prakash P. Pai, Ananth P. Pai and other members of the current promoter group of the company.

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"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," Reliance Retail said in its regulatory filing.

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Additionally, it has made a public offer of 26 percent to all Lotus shareholders.

"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 filing added.

The capital provided by RCPL will assist Lotus in growing and becoming a maker of well-rounded confectionery, cocoa, chocolate derivatives, and related goods across the industrial and consumer market spectrum, supported by cutting-edge production technology, best-in-class processes, and people, it said.

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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," she added.

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"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," said Abhijit Pai, Founder-Promoter of Lotus.

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