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Educomp sells 50% stake in Eurokids

Educomp has made three times of its original investment in Eurokids

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Press Trust of India New Delhi
Last Updated : Mar 26 2013 | 4:53 PM IST
Education solutions provider Educomp Solutions has sold its entire 50% stake in Eurokids International to a group of investors led by GPE India for an undisclosed sum.

"This transaction is an important milestone for the business transformation agenda that is currently underway," Educomp Solutions Ltd Chairman and MD Shantanu Prakash said in a statement today.

While he did not disclose the financial details of the deal, Prakash said: "Educomp has made 3x (times) its original investment in Eurokids and has created significant value for its shareholders by making a profit of approximately Rs 70 crore on this investment."

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The company is pursuing a business transformation agenda that seeks to focus on core businesses of digital content offerings & asset-backed offerings and monetise the non-core assets to unlock value, the company said.

Earlier in the year, Educomp had sought growth capital investment of Rs 22 crore in its internet education platform business Authorgen, from Kaizen PE and Bertelsmann.

"The completion of the Eurokids transaction is the second milestone in our asset monetisation strategy. The proceeds from the transaction will be ploughed back into our core businesses as well as used to de-lever our balance sheet," Educomp Solutions said.

Shares of Educomp Solutions were today trading at Rs 62.50 per share on BSE, down 2.65% from its previous close.

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First Published: Mar 26 2013 | 4:52 PM IST

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