New Delhi: IL&FS Group on Tuesday said it has received approval from creditors for sale of education business to Career Point Publications Pvt Ltd (CPPPL).
Schoolnet India Ltd (erstwhile IL&FS Education & Technology Service Ltd) would be sold to CPPPL.
The Committee of Creditors (CoC) represents all the financial creditors to IL&FS Ltd, the holding company of the IL&FS Group. According to a release, CPPPL's financial bid was approved by more than 78 per cent of IL&FS's creditors, in terms of value, through an e-voting process that concluded on November 5. Sources said the outstanding debt for this business amounts to Rs 600-650 crore.
The transaction marks the latest step towards overall resolution of debt totalling around Rs 94,000 crore.
IL&FS Group holds 73.70 per cent stake in Schoolnet India Ltd (SIL). The latter has 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two subsidiaries -- IL&FS Cluster Development Initiative (ICDI) and Skill Training Assessment Management Partners (STAMP).
The sale was approved by IL&FS board on November 7. Under the resolution framework for IL&FS, approval of Justice (Retd) D K Jain would be sought for the deal before approaching the National Company Law Tribunal for clearance. The release said CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of SIL and 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 ISDC held by SIL," it added. Further, CPPPL has also made a binding offer to purchase the businesses, including certain business debt of the two subsidiaries of SIL -- ICDI and STAMP for an additional consideration. SIL provides edu-tech services to K-12 schools and students through proprietary digital content, devices, platforms and solutions.
ISDC offers job-linked vocational programmes for youth while ICDI provides advisory and management services to central and state governments, among others, for development of common infrastructure and facilities in industrial clusters. STAMP provides assessment solutions for students, job seekers and working professionals....