Aditya Birla Fashion and Retail Ltd (ABFRL) announced that it would pay Rs 1,650 crore for a 51% stake in TCNS Clothing, which is home to well-known brands like W, Aurelia, Wishful, Folksong, and Elleven. According to the company’s exchange filing, the deal will involve the acquisition of the founding promoter’s stake through an SPA and a conditional public open offer, followed by a merger of the two entities.
ABFRL announced that it will make a conditional open offer to purchase up to a 29% stake from public shareholders at Rs 503 per share and purchase the remaining stake from the founder promoters to reach a total shareholding of 51% in TCNS. As a result, TCNS and ABFRL will merge under the terms of the merger agreement, and public TCNS shareholders (as of the effective date) will receive 11 shares of ABFRL for every 6 shares they currently own in TCNS.
“The TCNS deal is indeed a significant accomplishment as it enhances our current portfolio of outstanding brands that span the full range of Indian fashion. We are reaffirming our commitment to ethnic wear, the largest category in the apparel industry, by embracing TCNS’s portfolio of well-liked women’s ethnic brands, said Kumar Mangalam Birla, Chairman of the Aditya Birla Group.
With this acquisition, ABFRL’s portfolio of ethnic wear is anticipated to grow to Rs 5,000 crore over the following three years.
By combining the apparel-producing Madura Fashion, the Lifestyle division of Aditya Birla Nuvo (ABNL), and Pantaloon in 2015, the Aditya Birla Group established Aditya Birla Fashion & Retail (ABFRL). The annual sales of the biggest publicly traded branded apparel company in the nation total about Rs 8,136 crore.