For Rs1650 crore, Aditya Birla Fashion announced it has signed agreements to buy a 51% share in TCNS Clothing, the owner of the listed women’s branded apparel retailer and the owner of brands like W, Elleven, and Aurelia.
In the ethnic market, the business invested in designer labels Shantanu & Nikhil, Tarun Tahiliani, Sabyasachi, and Masaba in addition to purchasing Jaypore, a luxury craft-based artisanal brand. Additionally, the business acquired Reebok’s India operations a year ago and has long-term exclusive collaborations with companies like American Eagle, Ralph Lauren, Hackett London, Ted Baker, Fred Perry, and Hackett London.ABFRL would conduct a conditional open offer as part of the deal to buy up to 29% of the shares from public shareholders for Rs 503 per share. and purchase the initial promoters’ remaining shares to obtain a 51% overall stake in TCNS. Following the agreement, TCNS and ABFRL will be merged under a merger plan whereby TCNS’s public shareholders will get 11 shares of ABFRL for every six shares they now own of TCNS.
With this acquisition, ABFRL expects to add Rs 5000 crore to its ethnic wear portfolio over the next three years. During FY22, TCNS generated revenues of Rs. 896 crore.
