Lotus Chocolate Co shares gained 5% on Friday, a day after Reliance Retail Ventures agreed to purchase a controlling interest in the Indian chocolate manufacturer for 740 million rupees ($8.94 million).
Reliance Consumer Products Limited (RCPL), Reliance Retail’s fast-moving consumer products unit, to acquire a 51% interest from promoters at R.S113 per share and will also subscribe to certain non-cumulative redeemable preference shares.
RCPL also will launch an open offer to acquire 26% of Lotus’s public shareholders. In per price reflects a 3.5% discount to Thursday’s closing price of 117.10.
The stock closed at an all-time high for the fifth consecutive session on Friday, having risen 27.5 percent this week.
Reliance Industries, founded by Indian billionaire Mukesh Ambani, has expanded outside its core oil-to-chemical sector, with a heavy emphasis on retail and telecommunications.
Reliance Retail, India’s largest retailer, announced intentions this year to purchase dozens of local grocery and non-food brands as it aims to build its own $6.5 billion consumer products sector to compete with multinational behemoths like Unilever and Nestle.
Lotus shares, which began operations in 1992 and manufacture chocolates, cocoa products, and cocoa derivatives, are up 5.7% this year.