Aditya Birla Fashion and Retail Ltd (ABFRL) is likely acquire a majority stake in TCNS Clothing Ltd, the owner of the popular women’s wear brands W and Aurelia according to Mint's report.
Aditya Birla Fashion and Retail Ltd (ABFRL) is looking to acquire a majority stake in TCNS Clothing Ltd, sources privy to the matter told Mint. The company owns popular women’s wear brands W and Aurelia.
Brands such as Reliance Retail, Nykaa, ABFRL and Trent and private equity investors TPG Capital, had earlier shown interest in buying a stake in the firm according to Mint report.
“Aditya Birla is in advanced talks to acquire a 51 percent stake in TCNS Clothing, which includes private equity investor TA Associates’ 29 percent stake, a part of the promoter stake, and from the public in a subsequent open offer. The current professional management will continue to drive the company, and the promoters will also continue with their remaining stake," a source privy to the matter told the the newspaper.
ABFRL group's stock opened at Rs 284.25 on the NSE today and scaled a high point of Rs 293.05 at the time of writing this story.
The deal is likely to be done part in stock and part in cash and get sealed soon, the Mint reported.
“The transaction will provide Aditya Birla Fashion access to a strong portfolio of women’s wear brands with a strong distribution network," the source told the daily.
The US-based private equity firm TA Associates holds a 29.24 percent stake in TCNS apparel, while promoters of the company hold a 32 percent stake.
“Given TCNS’ leading position in the women’s wear segment, wide presence in the market, its strong brands and its expansion into other categories beyond apparel, there is a strong interest among strategists to explore this transaction," the source cited above told Mint.
TCNS Clothing reported a 46 percent growth in revenue in the September quarter from a year ago to Rs 350.5 crore.
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