New Delhi, Dec 19 (IANS) Crisis-ridden IL&FS Group on Tuesday said that it has received the approval of Justice (Retd.) D.K. Jain to sell its education business — Schoolnet India Limited (erstwhile IL&FS Education & Technology S ervice Ltd.) — to Career Point Publications Private Limited (CPPPL).
The financial bid of CPPPL was approved by 78 per cent members of the Committee of Creditors (CoC) last month through an e-voting process and it needed Justice Jain’s approval before being placed before NCLT for final approval to conclude the transaction.
Justice Jain, a former Supreme Court Judge, has been nominated by the court to oversee the IL&FS resolution and divestment process.
The asset sale is being undertaken under the resolution framework for IL&FS Group submitted to the National Company Law Appellate Tribunal (NCLAT) and the Mumbai bench of National Company Law Tribunal (NCLT), IL&FS said in a statement.
This transaction, on completion, would resolve nearly Rs 600 crore of IL&FS Group debt, the statement added.
Justice Jain has approved sale of education business on the conditions that IL&FS shall place the proposal before the NCLT for its approval; and the bid amount, so realized, shall be kept in an Escrow Account to be disbursed in accordance with the directions of NCLT and NCLAT.
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, is a leading education provider in India with diverse set of offerings.
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 s take 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 i.e. IL&FS Cluster Development Initiative Limited (ICDI) and Skill Training Assessment Management Partners Limited (STAMP) for an additional consideration.
Once the transaction goes through it would be major development in the res olution process after the IL&FS completed the the sale of its wind energy as sets to Orix Corporation of Japan in October.