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The committee of creditors of IL& FS have approved the sale of its education business to Career Point Publications Private Limited (CPPPL).
CPPPL bid was approved by more than 78 per cent of IL&FS Ltd’s creditors through an e-voting process that concluded on 5 November 2019, the company said in a filing. This is as stipulated under the Resolution Framework for IL&FS Group submitted with National Company Law Appellate Tribunal (NCLAT) and National Company Law Tribunal (NCLT), Mumbai Bench.
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.
CPPPL also made a binding offer to purchase the businesses (including certain business debt) of two other subsidiaries of SIL. This includes IL&FS Cluster Development Initiative Limited (ICDI) and Skill Training Assessment Management Partners Limited (STAMP) for an additional consideration.
The Board of IL&FS Ltd. approved the sale in its meeting held on November 7, this year. The transaction needs to get retired Justice D.K. Jain's nod before seeking the approval NCLT, Mumbai Bench, in line with the Resolution Framework.
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