Fashion Aditya Birla now be the first to get TCNS clothing companyThe owner of the listed women’s brand skin retailer that owns brands such as W, Elleven and Aurelia, leading nykaa in what eventually narrowed to a two-horse race for the company, people familiar with the development told ET. After the end, this may well be the biggest brand skin acquired by the aluminum-to-telecom conglomerate for $60 billion.
Retail advertisers, based in New Delhi the pasricha familyand PE investor TA Associates together own a 61.24% stake in the company.
Will activate open offer
They commissioned Credit Suisse to find a financial or strategic buyer. The transaction will also trigger an open offer to purchase an additional 25% of the company’s shares. If the open offer is bought out, new investors can own up to 86.24% TCNS, for Rs 3,016 crore. Current market capitalization of clothes TCNS is Rs 3,507.16 crore.
However, promoters are seeking a significant control fee and that is delaying ongoing negotiations, people familiar with the matter said. They say disagreements over pricing could also be a potential deal-breaker.
Amit Chand, chief financial officer, said: “The company is constantly evaluating different opportunities and in this regard consults with various advisors”. clothes TCNS Co. “When and when any event becomes a reportable event, the company will notify such event to the stock exchanges in accordance with the applicable terms of the applicable Sebi regulations.”
A spokesperson for Aditya Birla and head of country at TA Associates declined to comment. Letter addressed to Falguni Nayar, CEO, nykaastill unanswered.
Avendus is working with Nykaa on this transaction.
Local media reports last month said that some retailers, including Trent, dependenceAditya Birla Fashion and Nykaa, and PE companies TPG and Advent are eyeing a stake in TCNS.
The CEO of a rival retail company said: “Non-binding bids took place during the Diwali holiday. However, business has not performed as promised despite recent quarters. has seen an increase, largely due to festivals and reopening offices.” chain evaluated TCNS but did not bid. “Demand pricing is a tough spot. After all, business fundamentals drive demand and that’s why there have been some stops and starts.”
Sources say no exclusive deal has been signed with any of the parties yet. Promoters and TA Associates may retain a small portion of the shares for future price increases but that is not final yet. TA Associates bought a 40% stake in TCNS in 2016 for $140 million, but the private equity firm sold part of its stake in the company’s initial public offering in 2018.
