Stock Watch

Mumbai-based, Phoenix Mills Ltd has announced that the company will be entering into a strategic alliance with Entertainment World Developers Pvt Ltd (EWDPL) by acquiring over 42% stake in the company. EWDPL is a Tier II city centric retail mall, mixed use developer, currently engaged in the construction and operation of mixed-use retail centers and townships. The company will acquire the stake through a combination of fresh cash infusion and merger of entities that currently own equity in EWDPL. As a result of the transaction, EWDPL's post money equity is being valued at Rs 1,250 crore. Phoenix itself, is currently building retail led mixed use development centers in Tier I cities under the brand name of "Phoenix Market City" and through partnerships with regional players in the Tier II cities. Both companies are also in the process of creating a mall operations and marketing company under Phoenix for all projects. The Phoenix Mills Limited, together with its subsidiaries, engages in the development, operation, ownership, lease, and sale of real estate properties in India. The company also has interest in hotel properties. In addition, it provides convenience services, as well as engages in textile/cloth trading business. The investment and partnership with EWDPL is aligned to Phoenix's plans of establishing long-term relationship with leading national and regional developers across India with the objective of achieving, a pan India footprint within 3 years.