A Chinese subsidiary of listed technology education services provider NIIT Ltd is set to sell its entire stake in Wuxi NIIT Information Technology Consulting Ltd (Wuxi NIIT) for 3.75 million Chinese yuan (around Rs 4 crore or $588,000).
NIIT held a 60% stake in Wuxi NIIT through its Chinese subsidiary, NIIT China (Shanghai) Ltd.
According to a stock exchange disclosure, Wuxi has agreed to take up all the responsibilities and obligations for the operation and management, claims and debts of Wuxi NIIT with effect from 1 December 2017.
NIIT said it has already received 1 million Chinese yuan from Wuxi and will receive the remaining amount by 31 July.
The Indian company said the stake sale is in line with its focus on education centre consolidation and delivery through its synchronous learning technology platform and digital transformation initiatives.
NIIT had a decade ago signed agreements with the local government in Wuxi province to set up its training centres and programmes.
Wuxi NIIT’s turnover stood at 1.3 million Chinese yuan (around Rs 10.7 crore) in the financial year 2017-18.
Established in 1981, NIIT offers technology and computer training courses to individuals, enterprises and various institutions. It has three main lines of business – corporate learning group, skills and careers group, and school learning group - with a footprint across 40 countries.
NIIT’s consolidated net revenue stood at Rs 850.5 crore for 2017-18 as against Rs 845.2 crore in the previous fiscal.
Its profit after tax came in at Rs 62.5 crore for 2017-18, as against Rs 40.9 crore in the previous fiscal.
In January, NIIT had acquired US-based Eagle International Institute, Inc. for $8.1 million (Rs 51.3 crore).