Reliance makes open offer to acquire 26% stake in Lotus Chocolate

The offer will aggregate to a total consideration of ₹38.56 crore over the full acceptance

January 06, 2023 03:48 pm | Updated 03:48 pm IST - New Delhi

Photo used for representational purpose only.

Photo used for representational purpose only. | Photo Credit: Reuters

Two Reliance group firms - Reliance Consumer Products Limited (RCPL) and Reliance Retail Ventures Limited (RRVL) - have announced an open offer to acquire a 26% additional stake in Lotus Chocolate.

The firms will together acquire 33.38 lakh shares of Lotus Chocolate from the open market at a fixed price of ₹115.50 per share, said a notice by DAM Capital, which is managing the offer.

The offer will aggregate to a total consideration of ₹38.56 crore over the full acceptance, said an open offer-detailed public statement shared by the company with stock exchanges on Thursday.

The open offer starts on February 21 and closes on March 6, said the public notice.

Shares of Lotus Chocolate, which manufactures chocolates, cocoa products and cocoa derivatives, had on Thursday closed at ₹149.35 apiece, which was the highest price in the last three months.

RCPL is the FMCG arm and a wholly-owned subsidiary of RRVL.

The open offer follows RCPL's announcement last week for the acquisition of 51% stake of the paid-up equity share capital of Lotus from the current promoter and promoter group at a price of ₹113 per share aggregating to ₹74 crore.

After that, RCPL made a public announcement to acquire 26% stake in Lotus in accordance with the SEBI Takeover Regulations.

RRVL is a subsidiary of Mukesh Ambani-led Reliance Industries and is the holding company of all the retail businesses under the RIL group.

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