Zee Learn announced that it has signed definitive agreements to invest Rs 2 billion in MT Educare through a preferential allotment of equity shares (face value Rs 10 a share) for a stake of 44.53% in the expanded share capital of MT Educare.
The execution of definitive agreements has triggered the requirement to make an Open Offer and the regulations therewith will be complied.
Debshankar Mukhopadhyay, CEO, Zee Learn, said, "We are excited to announce the board's approval to subscribe for preferential allotment of equity shares in MT Educare. Post subscription, Zee Learn Ltd would hold a 44.53% stake in MT Educare. The acquisition of MT Educare 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 Pm 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 the company gained Rs 1, or 2.24%, to trade at Rs 45.60. The total volume of shares traded was 383,289 at the BSE (9.44 a.m., Thursday).