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Zee Learn up 7%, puts merger with Tree House on hold

Zee Learn said that it will keep on hold scheme of amalgamation of Tree House Education with the company. Zee Learn has also re-constituted a merger evaluation committee (MEC) with the authority to look into and suggest ways to salvage the deal with Tree House which will best keep the interest of Zee Learn stakeholders intact.

June 02, 2016 / 11:46 IST
     
     
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    Moneycontrol Bureau Shares of Zee Learn jumped over 7 percent as it has decided not to go ahead with Tree House Education deal. After January-March quarter results, Zee Learn had said that it was re-evaluating the merger plans.In a statement to BSE, Zee Learn said that it will keep on hold scheme of amalgamation of Tree House Education with the company. Zee Learn has also re-constituted a merger evaluation committee (MEC) with the authority to look into and suggest ways to salvage the deal with Tree House which will best keep the interest of Zee Learn stakeholders intact."Zee Learn will not be going ahead with the currently agreed share exchange ratio of 53 fully paid equity shares of Rs 1 each of Zee Learn  for 10 fully paid equity shares of Rs 10 each of Tree House," Zee Learn said.Shares of Tree House has been sharply falling for last two days but gained 3 percent on Wednesday. It has fallen 13 percent in last three days and 20 percent in last five days. Tree House’s net profit slumped 89 percent in FY16 to Rs 6.78 crore from Rs 60.88 crore in year-ago period. During the year, its PAT margin fell to 3.24 percent from 29.35 percent while revenue from operations stood at Rs 209.33 crore. The company has said that due to current economic conditions, consumer spends are weak and sluggish while bad monsoon and drought conditions in most states have worsened situation further.At 09:24 hrs Zee Learn was quoting at Rs 30.00, up Rs 1.10, or 3.81 percent while Tree House Education and Accessories was quoting at Rs 61.50, up Rs 0.20, or 0.33 percent on the BSE.

    first published: Jun 2, 2016 09:33 am

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