Aditya Birla Fashion To Acquire Majority Stake In TCNS Clothing

Aditya Birla Fashion and Retail Ltd. has signed a definitive agreement to acquire majority stake in TCNS Clothing Co.

As part of the transaction, the retail arm of Aditya Birla Group will make an open offer to acquire up to 29% stake and the balance stake from the founding promoters of TCNS Clothing to reach 51%, according to an exchange filing.

The open offer will be at Rs 503 per share from public shareholders.

Meanwhile, it will acquire 1.41 crore to 1.98 crore equity shares, representing 22% to 30.81%, at Rs 503 apiece from the promoters of TCNS Clothing, it said.

The acquisition is in line with ABFRL's objective of building a comprehensive fashion portfolio across consumer segments and price points, it said.

ABFRL will shell out Rs 1,650 crore for acquisition of an aggregate 51% stake. Following the completion of the transaction, TCNS Clothing will be merged with ABFRL.

"This deal is yet another marker of the Aditya Birla Group's faith in the dynamism and buoyancy of the Indian consumer economy," Chairperson Kumar Mangalam Birla said.

TCNS Clothing is the owner of ethnic brands, including W, Aurelia, Wishful, Folksong and Elleven.

"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," Birla said.

The transaction is subject to regulatory approval, including approvals from the Competition Commission of India, Securities and Exchange Board of India, stock exchanges and the National Company Law Tribunal.