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Phoenix Mills gets CCI nod for ₹5,450-cr stake buy in Island Star Mall Developers
Phoenix Mills, which currently holds a 51% stake, will take full ownership of the company as Canada Pension Plan Investment Board exits the joint venture
The Competition Commission has approved The Phoenix Mills Ltd’s ₹5,450-crore plan to acquire the remaining 49% stake in its joint venture, Island Star Mall Developers Pvt Ltd (ISMDPL).
Currently, Phoenix Mills holds 51% and Canada Pension Plan Investment Board (CPP Investments) 49% in ISMDPL. After the deal, Phoenix Mills will own 100% as CPP Investments exits the joint venture.
The CCI on August 19 confirmed approving the proposed acquisition.
ISMDPL is primarily into the development of commercial and retail real estate in certain cities.
"Acquirer is engaged in the development (including designing, execution, marketing etc.), operations and leasing of commercial and retail spaces, including retail malls, commercial offices, hospitality assets, food & beverages and sale of residential properties, through its various subsidiaries," CCI said in a statement.
"Target, directly and through its subsidiaries, is also primarily active in the development (including designing, execution, marketing etc.), operations and leasing of commercial and retail real estate, in certain cities," it said.
The Phoenix Mills also confirmed the development via regulatory filings on August 19.
The Phoenix Mills is a retail mall developer and operator with approximately 0.64 million square meters of retail space spread across 9 malls in cities like Mumbai, Pune, Bengaluru, Lucknow, Chennai, and Bareilly.
The company has developed over 2.11 million square meters spread across retail, hospitality, commercial and residential asset classes. Besides the nine operational malls, Phoenix Mills has four malls under development with approximately 0.45 million sq. meter of retail space.
Shares trading high
Owing to the approval, the shares of Phoenix Mills Ltd. gained in trade on August 20.
At 10.45 AM, shares of the Phoenix Mills were quoting ₹1,512.20 higher by 1.19% on the National Stock Exchange (NSE).
