MUMBAI: The IL&FS Group on Wednesday announced that it sold 73.69 per cent stake in Education business, held under Schoolnet India Limited (SIL), to Falafal Technologies Private Limited (FTPL). The sale was completed pursuant to the approval granted by the National Company Law Tribunal.
The transaction provides positive equity value to IL&FS and resolves nearly Rs 650 crore of consolidated fund based and non-fund based financial debt, without any haircut to lenders.
FTPL has paid Rs 7.37 crores as equity value for shares of SIL held by IL&FS Limited and IL&FS Employee Welfare Trust, in addition to taking over SIL’s fund based and non-fund based financial debt of nearly Rs. 650 crores.
FTPL has also agreed to a deferred consideration of Rs. 6.29 crores payable within 18 months from closure. Sale of SIL will reduce operating cost for IL&FS Group by nearly 19 per cent.
IL&FS Group holds 73.69 per cent stake in SIL while the latter holds 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two wholly owned subsidiaries – IL&FS Cluster Development Initiative Limited (ICDI) and Skill Training Assessment Management Partners Limited (STAMP).
As part of the sale transaction, the businesses of ICDI and STAMP have also been transferred to SIL through a slump sale for a consideration of Rs. 1 for each company. Transfer of debt of nearly Rs. 27 crores in ICDI and STAMP forms part of the slump sale.