Educomp Solutions sold 50 per cent stake in Eurokids
Educomp Solutions Ltd, on 26 March 2013 announced completion of the sale of its entire 50% stake in Eurokids International
Educomp Solutions Ltd, the India’s largest education company, on 26 March 2013 announced completion of the sale of its entire 50% stake in Eurokids International Limited to a group of investors led by GPE India.
Educomp had earlier finalised the stake sale on 8 January 2013 and the transaction has been completed on 26 March 2013, after meeting the expected conditions precedents.
The transaction is an important milestone for the business transformation agenda that is currently underway. Educomp has made 3x its original investment in Eurokids and has created significant value for its shareholders by making a profit of approximately 70 crore Rupees on this investment.
Earlier in the year 2013, Educomp sought growth capital investment of 22 crore Rupees in its internet education platform business Authorgen, from Kaizen PE and Bertelsmann.
The completion of the Eurokids transaction is the second milestone in asset monetization strategy of the company. The proceeds from the transaction will be ploughed back into company’s core businesses as well as used to de-lever their balance sheet.