IT company Educomp Solutions today said it will divest its entire shareholding in its subsidiary Vidya Mandir Classes following invocation of corporate guarantee by ICICI Bank.
"Pursuant to a negotiated settlement entered into with ICICI Bank, Educomp Solutions has accorded its approval to divest its entire shareholding in Vidya Mandir Classes (being 67 percent shareholding of VMCL), a subsidiary of the company and Educomp Learning Hour, a step down subsidiary) by executing the share purchase agreement dated July 25, 2016 with the buyer," Educomp said in a filing to the BSE.
The decision was made after invocation of the corporate guarantee of the company by ICICI Bank, it added.
"The said sale shares were exclusive security of the ICICI Bank under the facilities extended by ICICI Bank to Educomp Learning Hour Private Limited," it said.
The sale is in compliance with Educomp's approved corporate debt restructuring scheme and in accordance with the master restructuring agreement executed with the lenders and with the approval of ICICI Bank, holder of the exclusive security, it said.
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