Zee Learn plunges 5% on MT Educare stake buy

NEW DELHI: Shares of Zee Learn plunged over 5 per cent on Friday after the company acquired a controlling 44.5 per cent stake in listed MT Educare for about Rs 200 crore.


Following the announcement, the stock fell 5.14 per cent to end the day at Rs 42.45 on BSE. Zee signed a definitive agreement to invest Rs 200 crore in MT Educare through a preferential allotment of equity shares at Rs 62.57 apiece, the company said. This was at a discount to MT Educare's Monday's closing of Rs 71.35.



The move triggered an open offer by the company to the shareholders of MT Educare to acquire up to 1,86,64,096 fully paid-up equity shares of Rs.10 each at a price of Rs. 72.76 per fully paid up equity share, payable in cash.


Mumbai-based MT Educare runs the popular Mahesh Tutorials coaching classes and the Subhash Chandra-controlled Zee Group is keen on expanding its footprint and make inroads into the government-supported skilling and vocational segment.



Shares of MT Educare ended 1.89 per cent lower at Rs 70.