IL&FS gets approval to sell education business

Our Bureau Mumbai | Updated on December 19, 2019 Published on December 19, 2019

File photo   -  PAUL NORONHA

Justice D K Jain (Retired) has given his nod for the the sale of IL&FS education business to Career Point Publications Private Limited (CPPPL).

In November, the committee of creditors of IL& FS had approved the sale of the education business, which would reduce its debt by Rs 600 crore, a paltry amount when compared to the Rs 91,000 crore it owes.

D K Jain, a former Supreme Court judge was nominated to oversee the IL&FS resolution as well as divestment process. Jain has approved the sale on a condition that IL&FS shall place the proposal before NCLT for its approval and the bid amount be kept in an Escrow account which should be disbursed as per NCLT and NCLAT directions.

CPPPL, part of the Career Point Group, had emerged as the highest bidder for acquiring IL&FS's Education Business. The Career Point Group, through its flagship company, Career Point Limited, an education solutions provider for schools.

IL&FS Group holds 73.70 per cent stake in Schoolnet India Limited (SIL); and Schoolnet India Limited holds 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two subsidiaries - IL&FS Cluster Development Initiative Limited (ICDI) and Skill Training Assessment Management Partners Limited (STAMP).

CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of Schoolnet India Limited (SIL) and IL&FS Skills Development Corporation Limited (ISDC), in addition to paying a certain amount towards purchase of SIL’s equity.

As part of this transaction, CPPPL will also get ownership of 80 per cent stake in IL&FS Skills Development Corporation (ISDC) held by SIL.

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Published on December 19, 2019
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