The Phoenix Mills Limited has informed the Exchange regarding Notice of Postal Ballot
PHOENIXLTD · price
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The Phoenix Mills has sent a Postal Ballot notice to shareholders seeking approval for Canada Pension Plan Investment Board (CPP Investments) to exit its 49% stake in Island Star Mall Developers Private Limited (ISMDPL), a material subsidiary. CPP Investments will receive an aggregate cash consideration of Rs. 5,449.16 crore, to be paid in 4 tranches over 3 years through mechanisms such as share buyback, dividend declaration, selective capital reduction, or secondary acquisition. The transaction will give Phoenix Mills full 100% control of ISMDPL, which owns premium retail assets including Phoenix MarketCity Bangalore, Phoenix Mall of Millennium (Pune), and Phoenix Mall of Asia (Bengaluru), with ~4.4 million sq.ft. retail and ~2.2 million sq.ft. commercial office GLA. To facilitate payments, ISMDPL and its subsidiaries may redeem optionally convertible debentures up to Rs. 3,100 crore and declare dividends up to Rs. 1,300 crore, supported by internal accruals and additional borrowings. Remote e-voting runs from August 15, 2025 to September 13, 2025, with results expected by September 15, 2025.
Shareholders are being asked to approve a large related-party transaction worth Rs. 5,449.16 crore that consolidates Phoenix Mills' ownership of valuable mall assets but also commits the company to a multi-year cash outflow, likely funded partly through additional debt and subsidiary dividends, which may pressure short-term liquidity.