Aditya Birla Fashion Retail Ltd (ABFRL), part of the Aditya Birla Group, announced that it has completed the acquisition of a 51 per cent stake in TCNS Clothing to become a promoter of the women’s apparel brand. “Pursuant to the completion of the Conditional Open Offer and completion of the SPA: a) the Company has acquired 51 per cent of the expanded share capital of TCNS, thereby acquiring control over TCNS; b) the Company has become Promoter of TCNS w.e.f. September 26, 2023 and c) TCNS has become a subsidiary of the Company, and will also be a material subsidiary of the Company in accordance with SEBI Listing Regulations,” ABFRL said in a regulatory filing.
Earlier in May, ABFRL had announced that it will acquire a majority stake in TCNS Clothing, in a deal worth Rs 1,650 crore. Per the deal, the company acquired TCNS Clothing’s founding promoter’s stake through a SPA and a conditional public open offer. As per SPA, ABFRL acquired a total of 1.41 crore equity shares constituting 22 per cent of the expanded share capital of the company. The company said that the total cost for acquisition of 22 per cent stake post necessary closing adjustments was at ~Rs 685 crore.
“Pursuant to the SPA, the company acquired a total of 1,41,95,748 equity shares constituting 22 per cent of the expanded share capital of the company. Consequently, post conditional open offer and SPA closing, the company acquired 3,29,08,325 equity shares, in total, constituting 51 per cent of the expanded share capital of TCNS,” it said in the exchange filing.
The acquisition, ABFRL said, is in line with the company’s objective of building a comprehensive fashion portfolio across consumer segments and price points.
TCNS Clothing had posted a turnover of Rs 244.07 crore for the quarter ending June 30, 2023. It had posted a loss of Rs 36.98 crore during the quarter.
In August, ABFRL had posted its fiscal first quarter earnings wherein it reported a loss of Rs 161.62 crore from a profit of Rs 94.44 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 3,196.06 crore, up 47 per cent in comparison to Rs 2,174.76 crore during the first quarter of FY23.
ABFRL has a store network of 4000+ outlets and the company continues to expand. While its branded business network added 28 stores on a net basis in Q1, the ethnic business added 12 stores to the network, and Pantaloons added net 3 stores to its network during the quarter.
ABFRL has a repertoire of brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England. It also owns the leading fashion retail chain Pantaloons. It is also a retailer of international brands and has long-term exclusive partnerships with Ralph Lauren, Hackett London, Ted Baker, Fred Perry, Forever 21, American Eagle and Reebok.