Educomp Solutions Ltd said on Tuesday it has sold its entire 67% stake in unit Vidya Mandir Classes Ltd for Rs 90.56 crore ($13 million) as part of a debt recast deal with ICICI Bank.
The education services provider is also selling step-down subsidiary Educomp Learning Hour Pvt. Ltd for Rs 9.5 lakh, it said in a stock-exchange filing. It didn’t reveal the buyers’ identity.
The company said that the transactions have been concluded but it will get part of the deal amount by March 2019.
Educomp had acquired a strategic stake in engineering test preparation player Vidya Mandir for Rs 34 crore in 2010.
This is the second asset sale by Educomp within a year. The company sold its entire stake in Singapore-based ed-tech firm Wizlearn Technology Pte Ltd to V-cube Global Services Pte Ltd in October last year.
Founded in 1994, Educomp was once India’s largest education company. It expanded rapidly, including through acquisitions, in the early part of this century and piled on huge debt. But its business model went wrong and it has been divesting assets to pay back its lenders.
In 2014, Educomp divested its entire 55.41% stake in the engineering exam training arm Gateforum Educational Services Pvt. Ltd to private equity firm ASK Pravi Private Equity Opportunities Fund.
In 2013, it sold its 50% stake in pre-school chain EuroKids International to a consortium of financial investors led by Gaja Capital Partners. The same year, it also sold its stake in IndiaCan Education to its joint venture partner Pearson.
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