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Aditya Birla Fashion Retail Ltd (ABFRL) said it has entered into a definitive agreement to acquire TCNS Clothing, owner of leading ethnic brands W, Aurelia, Wishful, Folksong and Eleven.
The transaction will be done through a conditional public open offer followed by acquisition of the founder promoter’s stake through an SPA and a merger between the two entities.
“The promoter stake and open offer consideration for TCNS is valued at Rs 1,650 crore for 51% stake,” the company said in a statement.
Aditya Birla Group Chairman Kumar Mangalam Birla 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 adopting TCNS’ portfolio of favorite 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 transformative growth.”
Ashish Dixit, Managing Director, ABFRL said, “Each of these brands has been built over a long period of time and enjoys tremendous love from consumers. This transaction is an important part of our strategy to build India’s widest ethnic wear portfolio Is.
ABFRL said, “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 Rs 5,000 crore in the next three years.
Mr. Anant Daga, Managing Director, TCNS said, “Over the past 20 years, we have built India’s most successful women’s franchisee under our flagship brands. The market continues to offer long-term growth opportunities and our partnership with ABFRL will help us fully realize this potential.
As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29% stake from public shareholders at ₹503 per share and acquire the remaining stake from the founder promoters to reach an overall stake of 51% in TCNS Will do
Thereafter, TCNS will be merged with ABFRL under the Scheme of Amalgamation, wherein public shareholders of TCNS (as on the Effective Date) will receive 11 shares of ABFRL for every six shares held by them in TCNS.