Core Education & Technologies leads race to buy Rakesh Jhunjhunwala's stake in Aptech

MUMBAI: Core Education & Technologies, an educational services firm, has emerged as the front-runner to acquire billionaire investor Rakesh Jhunjhunwala’s stake in Aptech, two people familiar with the development said.

Jhunjhunwala is seeking a valuation of about Rs 700 crore for his stake, a 63% premium to Tuesday’s closing price of Aptech on the BSE. Jhunjhunwala purchased 36% stake in the company six years ago at onethird the current price. Aptech shares gained 1.21% to end at Rs 87.95 on Tuesday compared with a 2% gain for the broader market.

Core Education is India’s largest educational services firm by market capitalisation - Rs 2,888 crore on Tuesday - and has revenues of Rs 1,000 crore.

The sale, expected to be completed by March, is being handled by investment bank Avendus Capital. Audit and advisory firm Ernst & Young is doing due diligence of Aptech on behalf of Avendus Capital and the same will be shared with the bidders later this week, a source added. A senior official at E&Y confirmed that his firm has been assigned the due diligence work.

The valuation of Aptech - India’s first information technology training firm, started by Atul Nishar in 1984, and later acquired by Kalpathi Suresh, the founder of SSI, a southbased IT training firm - appears to be delaying the conclusion of the sale one of the persons quoted above said. Both Core Education and Avendus Capital declined to comment.