Zee Learn has revised the share swap ratio for amalgamating Tree House Education and Accessories (THEAL) with itself. The revised share swap ratio is 1:1, that is, for every one share held in Tree House, investors will receive one Zee Learn (ZLL) share.
According to the new merger scheme, shareholders of THEAL will get shares in ZLL in 10:10 ratio, the company said in a statement to the BSE. Earlier, on December 23, ZLL had set the swap ratio as 53 shares of ZLL for every 10 shares of THEAL.
Uncertainty to endIn a statement to the exchanges, ZLL said, the amalgamation scheme would “put to rest uncertainty and anxiety within different stakeholders.” It would help mitigate the recent developments in operational performance of THEAL over the past few quarters, it added.
According to ZLL, the amalgamation would strengthen its position in the educational landscape.
“Both ZLL and THEAL are in similar lines of business activities, and with a view to consolidate the business operations, the board of directors of both the companies have decided to amalgamate THEAL with ZLL,” the company said in a BSE filing.
Promoter holding in ZLL, which now stands at 61.55 per cent, will reduce to 54.37 per cent, post-merger.
The announcement triggered a strong rally in the prices of both the stocks. While ZLL shares surged 11.8 per cent at ₹33.65, those of Tree House jumped 14.8 per cent at ₹36.40 on the NSE.