Zee Learn Limited, India's leading Education Company with India's most trusted Diversified Education Brands, announced that it has signed definitive agreements to:
- Invest Rs. 200 crores in MT Educare Limited through a preferential allotment of equity shares (face value Rs.10/- per share) for a stake of 44.53% in the expanded share capital of MT Educare Limited.
- The execution of definitive agreements has triggered the requirement to make an Open Offer and the regulations therewith will be complied.
The transaction is subject to the fulfillment of customary closing conditions and the requisite statutory and regulatory approvals.
Commenting on the transaction, Mr. Debshankar Mukhopadhyay, CEO, Zee Learn Ltd said, "We are excited to announce the Board's approval to subscribe for preferential allotment of equity shares in MT Educare Ltd. Post subscription, Zee Learn Ltd would hold a 44.53% stake in MT Educare Ltd. The acquisition of MT Educare Ltd is aligned with our strategy to increase our footprint across segments in the Education sector and consolidate our offerings through the digital route. This stake acquisition will strengthen our Pre Schools and K12 offerings through Kidzee & Mount Litera Zee Schools respectively and will also mark our entry into the high growth market of Edutech through Robomate and test preparation / tutorials through other brands like Mahesh Tutorials, Lakshya and Chitale classes. This acquisition will also help us make inroads into the government supported skilling and vocational segment where MT Educare has a significant presence. Post the acquisition, our education offerings on a consolidated basis would reach around 3.50 lakhs students, making us one of the biggest education companies globally in terms of number of students served. With this association, we will create high value content and enrich the student experience by leveraging the strong experience of the academic teams of both the companies. We are confident that this acquisition will further improve and strengthen the shareholder value of both the companies and we are now equipped for an exponential growth in the future."
Shares of ZEE LEARN LTD. was last trading in BSE at Rs.42.45 as compared to the previous close of Rs. 44.75. The total number of shares traded during the day was 147905 in over 1058 trades.
The stock hit an intraday high of Rs. 45 and intraday low of 41.85. The net turnover during the day was Rs. 6337493.