Aditya Birla Fashion and Retail (ABFRL) on Friday said it will acquire 51 per cent of TCNS Clothing for Rs 1,650 crore. The deal will be undertaken with acquisition of promoter’s stake through a SPA and a conditional public open.
The size of deal means that it would be one of the largest deals in the Indian fashion segment as TCNS Clothing is the owner of popular ethnic brands W, Aurelia, Wishful, Folksong and Elleven.
“As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29 per cent stake at Rs 503 per share from public shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51 per cent in TCNS,” ABFRL said in its press release.
Under the deal, TCNS will be amalgamated with ABFRL and public shareholders of TCNS will receive 11 shares of ABFRL for every six shares that they hold in TCNS.
ABFRL has been building its ethnic portfolio over the last five years through strategic actions. The company expects its ethnic wear portfolio to reach Rs 5,000 crore in the next three years.
In a statement, Kumar Mangalam Birla, Chairman, Aditya Birla Group said, “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.”
