Shares of Phoenix Mills Ltd were trading in the green and 2% higher on Tuesday, 20 August, after the Competition Commission of India (CCI) approved the company’s proposed Rs 5,450 crore acquisition of a 49% stake in Island Star Mall Developers Pvt Ltd.

Phoenix Mills now owns 51% of the joint venture, while Canada Pension Plan Investment Board (CPP Investments) owns the remaining 49%. Following the acquisition, CPP Investments will depart, and Phoenix Mills will acquire complete control of ISMDPL.

ISMDPL is constructing commercial and retail real estate projects in select Indian cities, according to a release issued by the regulator on Tuesday.

Phoenix Mills, in an exchange filing, said, “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.”

Furthermore, the retail mall operator and real estate player stated that the proposed transaction will be carried out through a combination of repurchase, capital reduction, and dividend distribution 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.”

At 12:40 pm, the shares of Phoenix Mills were trading 2.28% higher at Rs 1,537.70 on NSE. 

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