IndiaCan is a 50-50 joint venture between Educomp and Pearson that started in 2009 to focus on the vocational training market in India.
Exiting IndiaCan is in line with our stated consolidation strategy and business transformation agenda, which is to focus on digital content and IP offerings and asset-backed offerings like schools and colleges. We are successfully making one more divestment and thus saving the company from the need of funding the losses and other capital needs of a non-core business, said Shantanu Prakash, chairman and MD, Educomp Solutions.
Earlier this year, Educomp announced a primary capital investment from Kaizen PE and Bertelsmann, in its internet education platform Authorgen.
Last month, it sold its stake in Eurokids to a group of investors led by GPE India. This transaction is the third in a series of exits from the non-core businesses of the firms portfolio. Educomps stock fell 3.49% on the BSE to close at R58.
In February, Pearson completed the acquisition of TutorVista a process it started in 2009 by acquiring 17% stake in the latter. In January 2011, it purchased another 59% for R577 crore. It increased its controlling stake to 80% from 76% in the same year.