Tree House up 4% ahead of board meeting to review biz
The stock had been going through a lot of turbulence following Zee Learn's calling off proposed merger on the company's cash situation. The stock has fallen over 80 percent in one year.
Shares of Tree House Education and Accessories saw a 4 percent rise intraday Thursday as investors are hopeful of a renewed operations model. The company will meet for a board meet on January 12.
In a release to the stock exchange the company said that it has decided to review its operations and consider options going forward. The meeting's agenda "... discuss the current working of the company and consider various options including converting self-operated pre-schools of the company into franchise operations,” the statement said.
The stock had been going through a lot of turbulence following Zee Learn’s calling off proposed merger on the company’s cash situation. The stock has fallen over 80 percent in one year.
Earlier, Zee Learn had withdrawn the merger proposition citing bad press due to the closure of centres. "... coupled with the steadily deteriorating financials of Tree House, allegations of irregularities by Tree House/its promoters and need to protect the interest of ZLL shareholders, led to the Board of ZLL to unanimously agree to withdraw from the merger process with Tree House," Zee Learn had said in a filing to the exchanges on December 16. The company had also threatened of legal action citing damages to its brand image.
Tree House had hit back at Zee Learn and accused the company of fraud and conspiring to 'destroy' its rival.
The pre-school chain franchise owner had announced a shutdown of 113 branches due to lack of funds to pay its staff in December last year. A few parents of the enrolled children had reportedly filed police complaint over actions of the firm.
At 12:02 hrs Tree House Education and Accessories was quoting at Rs 27.10, up Rs 0.25, or 0.93 percent on the BSE.