Ceftriaxone is typically used for treatment of Shigellosis but isolates resistant to third generation cephalosporins have been reported globally, primarily conferred by genes encoding extended-spectrum beta-lactamases such as blaCTX-M-15. The blaCTX-M-15 gene is typically found in a transpositional unit consisting of an upstream ISEcp1 and a downstream partial open reading frame (orf477Δ). Apart from providing a promoter for blaCTX-M-15, ISEcp1 also confers intracellular mobility, with the transpositional unit detected in both plasmids and chromosomes in different Gram-negative bacterial pathogens. In this study, we utilised long read sequencing to examine the chromosomal insertion of a ISEcp1-blaCTX-M-15-orf477Δ transpositional unit within a clinical strain of Shigella flexneri. The transpositional unit was determined within a phage-inducible chromosomal island (PICI) and its insertion disrupted a key gene required for PICI transfer. This PICI was determined to be integrated within the portal gene of a larger prophage. These gene disruptions in both PICI and the prophage can negate direct phage-mediated horizontal gene transfer of blaCTX-M-15. However, the presence of other key prophage genes suggests a series of cascading events that could provide an alternate route of intercellular transfer of blaCTX-M-15. These findings highlight the value of long-read sequencing in investigations of intercellular transfer of antibiotic resistance genes and its contribution to understanding of genomic diversity in pathogens and infection control interventions.