Representational picture solely.
| Photo Credit: Special Arrangement
Aditya Birla Fashion Retail Limited (ABFRL) stated it has entered into definitive agreements to acquire TCNS Clothing, the proprietor of main ethnic manufacturers W, Aurelia, Wishful, Folksong and Elleven.
This transaction can be carried out via acquisition of the founding promoter’s stake via a SPA and a conditional public open supply adopted by the merger between the 2 entities.
“The value of the promoter stake and open offer consideration for TCNS is ₹1,650 crore for 51% stake,” the corporate stated in an announcement.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, stated, “For ABFRL, the TCNS deal is indeed a significant milestone as it complements our existing portfolio of exceptional brands across the entire spectrum of Indian fashion.”
“By embracing TCNS’s portfolio of loved women’s ethnic brands, we are reinforcing our commitment to ethnic wear, the largest category in the apparel industry. With this acquisition, the fast-growing ABFRL platform is poised for the next phase of transformational growth,” he added.
Ashish Dikshit, Managing Director, ABFRL, stated, “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.”
“Over the last five years, ABFRL has built its ethnic portfolio through a series of strategic and calibrated actions,” ABFRL stated. With this acquisition ABFRL’s ethnic put on portfolio is anticipated to attain ₹5,000 crore in the subsequent three years, it added.
Mr. Anant Daga, Managing Director of TCNS added, “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.”
As a part of the transaction, ABFRL will make a conditional open supply to acquire up to 29% stake at ₹503 per share from public shareholders and acquire the remaining stake from the founder promoters to attain an general shareholding of 51% in TCNS.
Following this, TCNS can be amalgamated with ABFRL underneath the merger scheme whereby public shareholders of TCNS (as on efficient date) will obtain 11 shares of ABFRL for each six shares that they maintain in TCNS.
