Tree House Education & Accessories shares soared as much as 18 per cent in the early trade on Wednesday after the company announced that the board of directors have approved the revised scheme of amalgamation of the company with Zee Learn. The revised terms and condition includes appointed date and share exchange ratio. Reacting on the announcement, shares of Zee Learn also surged as much as 16.72 per cent in the early trade. As per revised merger scheme, shareholders of Tree House will get shares in Zee Learn in the ratio of 1:1.
At 9.31 am, Tree House shares were trading 12.66 per cent up at Rs 35.60. The scrip opened at Rs 32 and has touched a high and low of Rs 37.30 and Rs 32, respectively, in trade so far.
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Likewise, Zee Learn was trading 10.76 per cent up at Rs 33.45. Shares of the company opened the day at Rs 32 and has touched a high and low of Rs 35.25 and Rs 31.65, respectively, in trade so far.
Both Tree House and Zee Learn are primarily engaged into business of pre-school activities.
In a BSE filing, Zee Learn said, “The board of directors of Zee Learn (ZLL) approved the revised Scheme of Amalgamation of Tree House Education & Accessories with ZLL, subject to requisite statutory and regulatory approvals. The board of ZLL approved revised share swap ratio of 10 equity shares of ZLL of Rs 1 each fully paid up for every 10 equity shares of Tree House of Rs 10 each fully paid.”
Later, shares of Tree House and Zee Learn closed 15.51 per cent and 11.26 per cent up at Rs 36.50 and Rs 33.60, respectively. Benchmark BSE Sensex settled 59.24 points down at 28,005.