phoenix-mills-bets-the-farm-with-qip

Phoenix Mills bets the farm with QIP

The Indian textile mill-turned-mall operator raises $246 million for acquisition financing, pricing its deal at the top end of the range.

By Dan Slater

August 01, 2007

In a bold move, Phoenix Mills has raised an amount equivalent to almost 40% of its market capitalisation by issuing $246 million of new shares in a Qualified Institutional Placement (QIP), with the proceeds going to fund an acquisition The target is unlisted Atlas Hospitality, a hotel operator with projects in Mumbai, Chennai, Pune and Agra

The acquisition follows a merger of Phoenix Mills with Ashok Ruia Enterprises, approved in March this year, but not yet finalised

Following Wednesday's deal, the companyÆs family shareholder saw its stake drop from 74 8% with a freefloat of 25 2%, to 50 3% with a freefloat of 49 7%

The deal will help take the company a step...

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