According to Kumar Mangalam Birla, chairman of the Aditya Birla Group, “This deal is yet another marker of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy.” Aditya Birla Fashion and Retail (ABFRL) has signed a definitive deal to purchase a controlling (51% ownership) in TCNS Clothing for Rs 1,650 crore.
The deal will be carried out by acquiring the founding promoter’s stake via a sale and purchase agreement and a conditional public open offer, followed by a merger of the two organizations.
According to ABFRL, the value of the promoter stake and open offer consideration for TCNS is Rs 1,650 crore for a 51% stake.
“As part of the transaction, ABFRL will make a conditional open offer to acquire up to 29% of TCNS from public shareholders at Rs 503 per share and the remaining stake from the founder promoters to achieve an overall shareholding of 51% in TCNS,” ABFRL said.
According to the above, TCNS will be merged with ABFRL under a merger scheme in which public shareholders of TCNS (as of the effective date) will receive 11 shares of ABFRL for every six shares of TCNS.
The acquisition is subject to regulatory approvals, including those from the Competition Commission of India, the Securities and Exchange Board of India, stock exchanges, and the National Company Law Tribunal.
W, Aurelia, Wishful, Folksong, and Elleven are ethnic brands available at TCNS Clothing.
According to Kumar Mangalam Birla, chairman of the Aditya Birla Group, “This deal is yet another marker of the Aditya Birla Group’s faith in the dynamism and buoyancy of the Indian consumer economy.” As India prepares for a multi-decadal consumer boom, ABFRL is a leader in crafting our lively nation’s fashion landscape.”
“The TCNS deal is a significant milestone for ABFRL because it complements our existing portfolio of exceptional brands across the entire spectrum of Indian fashion,” he added. We are strengthening our commitment to ethnic wear, the largest category in the garment business, by adopting TCNS’s portfolio of well-known women’s ethnic brands. With this acquisition, the rapidly expanding ABFRL platform enters the next phase of transformational expansion.”
According to Anant Daga, TCNS’s managing director, “…Over the last 20 years, we have built India’s most successful women’s franchise on the back of our leading brands.” The market continues to provide long-term growth opportunities, and our collaboration with ABFRL will assist us in fully realizing this promise. ABFRL’s established brand-building expertise, distribution power, and strong partner ecosystem will assist our brands in entering the next phase of growth and profitability.”
*Above image is taken from Google.
