Birla co to buy Aurelia owner for Rs 1,650cr

MUMBAI: Aditya Birla Fashion Retail (ABFRL) has inked an agreement to acquire publicly listed TCNS Clothing, owner of ethnic brands like W, Aurelia, Wishful, Folksong and Elleven, for Rs 1,650 crore. ABFRL will first acquire TCNS founder's stake and will make a conditional open offer to TCNS' non-promoter shareholders. The apparel maker then plans to merge TCNS into itself.

The value of the founder's stake and open offer is Rs 1,650 crore for 51% stake in TCNS, making this one of the largest deals in the Indian fashion space. With this acquisition ABFRL's ethnic wear portfolio is expected to reach Rs 5,000 crore in three years. ABFRL will make a conditional open offer to acquire up to 29% stake at Rs 503 per share from shareholders and acquire the remaining stake from the founder promoters to reach an overall shareholding of 51% in TCNS.

TCNS will be amalgamated with ABFRL wherein shareholders of TCNS (as on effective date) will receive 11 shares of ABFRL for every 6 shares they hold. TCNS stock ended Friday's trade up nearly 5% at Rs 521 on the BSE.


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