Aditya Birla Fashion and Retail Limited (BSE:535755)  is now the frontrunner to acquire TCNS Clothing Co. Limited (NSEI:TCNSBRANDS), people aware of the development told ET. Promoters of the retailer, Pasricha family, and TA Associates Management, L.P. together own 61.24% of the company.

They had mandated Credit Suisse to find a strategic or financial buyer. The transaction will also trigger an open offer for an additional 25% of the company. If the open offer is fully bought into, the new investor could own up to 86.2% of TCNS, for INR 30.16 billion.

However, the promoters are seeking a significant control premium, and that is delaying the ongoing negotiations, said people in the know. Disagreements over valuations could also be a potential deal breaker, they said. ?The company keeps on evaluating various opportunities on an ongoing basis and in this regard consult with various advisors,?

said Amit Chand, Chief Financial Officer, TCNS Clothing Co. ?As and when any event becomes a reportable event, the company informs the same to stock exchanges in accordance with applicable provisions of the applicable Sebi regulations?.