Phoenix Mills Ltd. shares gained in trade on Tuesday, August 20, after the the Competition Commission of India (CCI) has approved Phoenix Mills Ltd’s proposed Rs 5,450 crore acquisition of a 49 percent stake in Island Star Mall Developers Pvt Ltd (ISMDPL).
Phoenix Mills currently holds 51 percent in the joint venture, with the remaining 49 percent owned by Canada Pension Plan Investment Board (CPP Investments). Following the transaction, CPP Investments will exit and Phoenix Mills will take full ownership of ISMDPL.
ISMDPL is engaged in developing commercial and retail real estate projects across select cities in India, the regulator said in its release on Tuesday.
At 9.35 a.m, shares of the firm were quoting Rs 1,512.9, higher by 0.6 percent on the NSE.
"The aggregate consideration payable to CPP Investments for the proposed transaction is agreed at approximately Rs 5,449 crores, to be paid over 36 months in four tranches in compliance with applicable laws and regulations, with suitable adjustments, including as maybe necessary in case of prepayment of a relevant tranche," said Phoenix Mills in an exchange filing.
Further, the retail mall operator and realty player added that the proposed transaction will be implemented through a mix of buyback, capital reduction and dividend payout by ISMDPL and/or secondary purchase by PML and or its affiliates.
Atul Ruia, Chairman at The Phoenix Mills, said: “ISMDPL marked the beginning of our long-standing partnership with CPP Investments. What started with a single asset has grown into a portfolio of premium, retail-led mixed-use developments across key urban centres. We are deeply appreciative of CPP Investments’ role in shaping this journey and look forward to continuing our valued partnership through our other joint ventures which continue as planned."
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