Zee Learn climbs down from Tree House
Tree House has been hitting new lows consistently for the past few days and today was nothing new – it hit a new 52-week low at Rs.58. On the other hand, Zee Learn is doing very well, up intra day over 7% up at Rs.31. Volumes have surged over 2.5 times.
Zee Learn’s Board had met on 30th May to evaluate the Q4 and Fy16 financial performance of Tree House in view of its proposed takeover of the company. But post this evaluation, Zee Learn announced yesterday that it has decided to keep on hold the Scheme of Amalgamation of Tree House with the company.
The company has categorically stated that with the cancelation of the scheme itself, it was not going ahead with the currently agreed share exchange ratio of 53 fully paid equity shares of Re.1 each of Zee Learn for 10 fully paid equity shares of Rs.10 each of Tree House.
It was also re-constituting the Merger Evaluation Committee (MEC) with the authority to look into and suggest ways to salvage the deal with Tree House which will best keep the interest of Zee Learn stakeholders intact.
Tree House, for FY16 reported a 89% slump in net profit at Rs.7 crore.