For Rs. 1,650 crore, Aditya Birla Fashion will purchase a 51% share in TCNS Clothing.
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Aditya Birla Fashion and RetailĀ will acquire 51 per cent stake inĀ ethnic wearĀ brandĀ TCNS clothing, parent company of W, Aurelia, Wishful, Folksong and Elleven for Rs 1,650 crore, the former said in a BSE filing.
TheĀ acquisitionĀ is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points,Ā ABFRLĀ said.
The deal will take place throughĀ acquisitionĀ of the founding promoterās stake through a SPA and a conditional public open offer. This will be followed by aĀ mergerĀ between TCNS andĀ ABFRL.
āThe value of the promoter stake and open offer consideration for TCNS is ~ Rs. 1650 Cr. for 51% stake, making this one of the largest deals in the Indian fashion space.ā
OnĀ merger, shareholders of TCNS will receive 11 shares of ABFRL for every 6 shares that they hold in TCNS.
āFor 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 womenās ethnic brands, we are reinforcing our commitment toĀ ethnic wear, the largest category in the apparel industry,ā commentedĀ Kumar MangalamĀ Birla, Chairman,Ā Aditya BirlaĀ Group.
With this acquisition ABFRL expects its ethnic wear portfolio to reach Rs. 5,000 crore in the next 3 years.
TCNS ClothingĀ has the largest womenās wear distribution network with 4,100 outlets. The company recorded a turnover of Rs 933 crore and its profit after tax stood at Rs 10.58 crore as on December 31, 2022.
As per media reports, retail majors such as Reliance Retail, Nykaa and Trent were also in the race to acquire the popular ethnic wear brand.