Zee Learn Friday informed the exchanges that they have called off their proposed merger with Tree House Education after news broke about Treehouse shutting 113 branches due to fund crunch.
In August, Tree House and Zee Learn revised the terms of their merger. Both companies were in talks for a deal as early as December 2015.
According to CNBC-TV18’s Varinder Bansal the financial irregularities of Tree House has been widely reported in the media. Zee Learn now just wants to stay out of trouble and so are walking out of the merger.
However, the big question is why the market regulator Sebi and Education Ministry haven’t intervened despite the financial irregularities for a long time.
JN Gupta, Former ED of Sebi says even he has the same question but it is high time for Sebi to get into action and issue notice to company directors and promoters because they have not only cheated the shareholders but also the parents. Education Ministry should also intervene and start asking question to promoters and management of Treehouse, says Gupta
Prakash Diwan of prakashdiwan.in says this is a sector that is mildly regulated.
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