Aditya Birla Fashion may beat Nykaa to acquire TCNS Clothing Co

According to news reports, Aditya Birla Fashion has moved ahead of Nykaa in the race to purchase TCNS Clothing Co, the owner of the publicly traded women's branded apparel retailer that owns names like W, Elleven, and Aurelia.

Once everything is said and done, this may turn out to be the $60 billion conglomerate's largest acquisition of branded apparel.

Promoters of the retailer, the Pasricha family of New Delhi, and PE investor TA Associates collectively hold 61.24% of the business.

They had given Credit Suisse the task of locating a financial or strategic acquirer. An open offer for an additional 25% of the company will also be made as a result of the acquisition. The new investor might purchase up to 86.24% of TCNS for Rs3,016 crore if the open offer is completely accepted.

According to reports, the promoters' demand for a sizable control premium is holding up the ongoing negotiations. They added that disagreements over valuations can potentially be a deal-breaker.

Nykaa and Avendus are collaborating on this deal.

Several retailers, including Trent, Reliance, Aditya Birla Fashion, and Nykaa, as well as PE companies TPG and Advent were reportedly interested in the TCNS holding, according to local media reports from last month.

For feedback and suggestions, write to us at editorial@iifl.com