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  1. Zee Learn to acquire 44 percent stake in MT Educare

Zee Learn to acquire 44 percent stake in MT Educare

The stock of education services provider MT Educare got a boost on Thursday after Zee Learn informed the stock exchanges that it has signed definitive agreements to invest Rs 200 crore in the company through a preferential allotment of 3.19 crore equity shares at a price of Rs 62.57 each.

By: | Mumbai | Published: February 16, 2018 2:42 AM
Zee Learn, MT Educare, zee, education, stocks, india Zee Learn will make an additional open offer to public shareholders of MT Educare to buy up to 26% stake.

The stock of education services provider MT Educare got a boost on Thursday after Zee Learn informed the stock exchanges that it has signed definitive agreements to invest Rs 200 crore in the company through a preferential allotment of 3.19 crore equity shares at a price of Rs 62.57 each. Following the issue, Zee Learn will acquire 44.53% stake in MT Educare. The acquisition is expected to be completed before May 31, 2018. No government or regulatory approval is required for the acquisition, the company said.

Zee Learn will make an additional open offer to public shareholders of MT Educare to buy up to 26% stake, as per the norms prescribed for substantial acquisition of shares. The open offer price is Rs 72.76 per share. Zee Learn will need to expend as much as `135.79 crore to buy 1.86 crore shares in the open offer. If we consider complete subscription of 26% offer, Zee Learn’s stake will increase to about 70%.
The stock of Zee Learn closed the session 0.34% higher at `44.75, while the MT Educare stock gained 2% to Rs 71.25.

Zee Learn in an exchange notification said that the acquisition is aligned with its strategy to increase its footprint across the education sector and to consolidate its education portfolio, especially through digital offerings. “It also marks our entry into the high growth market of edutech and tutorials with a base of more than 3.5 lakh students across India,” added Zee Learn.

MT Educare is a coaching service provider in school science and commerce streams across Maharashtra and other states in India.

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