Shares of Zee Learn and Tree House Education & Accessories ended down amid profit booking a day after the boards of the companies approved the merger plan of Tree House with the former.
Shares of Zee Learn and Tree House Education & Accessories ended down amid profit booking a day after the boards of the companies approved the merger plan of Tree House with the former. The companies informed the stock exchanges about the merger on December 4.
Shares of Tree House hit the 5% lower limit to end at R195.90, while Zee Learn slipped over 4% intraday before ending the day at R40.40, down R0.75 or 1.82%. Shares of Zee Learn have lost nearly 15% from its 52-week high of R46.80 on December 4.
Parent company, Zee Entertainment Enterprises (ZEE), ended down nearly 2% to settle at R410.65 per share.
According to stock exchange announcement, shareholders of Tree House will receive 53 shares in return of every 10 shares of Zee Learn. Tree House will cease to exist post completion of merger, while promoter holding in Zee Learn will decline to 36.23% post the merger – after receiving shareholders and regulatory clearance – compared with 61.60% at present.
“Both Zee Learn and Tree House are in similar line of business activities i.e. business pre-school and with a view to consolidate business operations, the board of directors of the company decided to amalgamate Tree House with Zee Learn,” Tree House said in a statement.