Aditya Birla Fashion & Retail Ltd (ABFRL) has introduced it’s going to purchase a majority stake in girls’s branded attire firm TCNS Clothing, in a deal price Rs 1,650 crore. The Aditya Birla group agency has entered into definitive agreements to purchase a 51 per cent stake in TCNS Clothing, which owns ethnic manufacturers comparable to W, Aurelia, Wishful, Folksong and Elleven, mentioned a joint assertion.
As per the deal, it’s going to purchase TCNS Clothing’s founding promoter’s stake by means of an SPA (Share Purchase Agreement) and a conditional public open provide adopted by a merger between the 2 entities, it mentioned.
“The worth of the promoter stake and open provide consideration for TCNS is Rs 1,650 crore for 51 per cent stake, making this one of many largest offers in the Indian vogue area,” the statement said.
TCNS Clothing had a turnover of Rs 896.05 crore for the monetary yr which ended on March 31, 2022.
“The acquisition is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points,” it added.
Besides, the acquisition can be topic to regulatory approvals from the Competition Commission of India (CCI), SEBI, inventory exchanges, National Company Law Tribunal (NCLT) and approval by the requisite majority of shareholders of the ABFRL, the assertion mentioned.
The firm expects the deal to be accomplished inside 9-12 months.
“Pursuant to the above, TCNS might be amalgamated with ABFRL below the merger scheme whereby public shareholders of TCNS (as on efficient date) will obtain 11 shares of ABFRL for each 6 shares that they maintain in TCNS,” it added.
Over the cost of acquisition or the price at which the shares are acquired, ABFRL said it is “at a consideration of Rs 503 per sale shares, subject to adjustments under the SPA”.
Moreover, the “open provide is being made at Rs 503 per fairness share, which has been decided in accordance with SAST Regulations,” the statement added.
Under the open offer, ABFRL “will acquire up to 29 per cent of the Expanded Share Capital, subject to Minimum Level of Acceptance,” it added.
Commenting over the event, Aditya Birla Group chairman Kumar Mangalam Birla mentioned for ABFRL, the TCNS deal is certainly a big milestone because it enhances its present portfolio of outstanding manufacturers throughout the complete spectrum of Indian vogue.
“Portfolio of cherished girls’s ethnic manufacturers, we’re reinforcing our dedication to ethnic put on, the most important class in the attire business. With this acquisition, the fast-growing ABFRL platform is poised for the subsequent part of transformational development,” he said.
TCNS managing director Anant Daga said, “Over the last 20 years, we have built India’s most successful women’s franchise on the back of our leading brands. The market continues to offer long-term growth opportunities and our partnership with ABFRL will help us fully realise this potential.” “ABFRL’s confirmed brand-building functionality, distribution power and robust ecosystem of companions will assist our manufacturers into its subsequent part of development and profitability,” he added.
ABFRL earned a revenue of Rs 8,136 crore for the financial year which ended on March 31, 2022. It is India’s first billion-dollar pure-play fashion powerhouse.
The company has a network of 3,468 stores and a presence at 6,515 points of sales in department stores across India, as on March 31, 2022.
It has a repertoire of India’s largest brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England. It also owns leading fashion retail chain Pantaloons.
Besides, it is also a multi-brand retailer of international brands and has long-term exclusive partnerships with Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok.
In the ethnic wear business, it owns brands such as Jaypore, Tasva & Marigold Lane.
ABFRL also has strategic partnerships with designers Shantanu & Nikhil, Tarun Tahiliani, Sabyasachi and the House of Masaba.
Ashish Dikshit, managing director of ABFRL, said, “As young Indians identify a new-found confidence in their identities woven around Indian culture and heritage, the next set of leading consumer brands will be built in the Indian ethnic wear space. TCNS, through its brands W, Aurelia, Wishful, Folksong & Elleven, is catering to the Indian women’s fashion needs across markets and price points. Each of these brands have been built over a long period of time and enjoy tremendous consumer love. This transaction is a pivotal piece of our strategy of building India’s most comprehensive ethnic wear portfolio.”
(With PTI Inputs)
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