Aditya Birla Fashion To Acquire 51% Stake in TCNS Clothing
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Aditya Birla Fashion and Retail Ltd (ABFRL) will acquire a 51 per cent stake in TCNS Clothing, which owns W, Aurelia, Wishful, Folksong, and Elleven, for INR 1,650 crore.
The transaction will be carried out through acquisition of the founding promoter’s stake through a SPA and a conditional public open offer followed by a merger between the two entities, the company said in an exchange filing on Friday.
Over the last five years, ABFRL has built its ethnic portfolio through a series of strategic and calibrated actions. With this acquisition ABFRL’s ethnic wear portfolio is expected to reach INR 5,000 crore in the next three years.
“This deal is yet another marker of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy. With this acquisition, the fast-growing ABFRL platform is poised for the next phase of transformational growth,” said Kumar Mangalam Birla, chairman, Aditya Birla Group.
” Over the last 20 years, we have built a 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 realize this potential. ABFRL’s proven brand- building capability, distribution strength and strong ecosystem of partners will help our brands into its next phase of growth and profitability,”said Anant Daga, managing director, TCNS.
As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29 per cent stake at INR 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.
