New Delhi (IANS) The IL&FS Group on Wednesday completed sale of its 73.69 per cent stake in Education business, held under the 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 (NCLT), Principal Bench through an order dated August 31, 2020. 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 crore as equity value for shares of Schoolnet India Limited (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.
Further, FTPL has also agreed to a deferred consideration of Rs 6.29 crore payable within 18 months from closure.
FTPL is a subsidiary of Lexington Equity Holdings Ltd (LEHL). LEHL already holds a 26.13 per cent stake in Schoolnet India.
Sale of SIL will reduce operating cost for the IL&FS Group by nearly 19 per cent. IL&FS Group holds 73.69 per cent stake in SIL. SIL 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 Re 1 for each company. Transfer of debt of nearly Rs 27 crore in ICDI and STAMP forms part of the slump sale.
Further, the shares of ICDI and STAMP have been transferred to IL&FS Limited. SIL will continue to retain 80.01 per cent in ISDC which will become a step down subsidiary of FTPL. This development represents another key milestone in the overall resolution for the IL&FS Group under the New Board.
As part of the overall resolution plan to address a significant portion of the Group's debt, the sale of a number of other Group assets has been initiated which is currently in various stages of progress.
SIL provides Ed-tech services to K-12 schools and students through proprietary digital content, devices, platforms and solutions. ISDC offers job linked vocational programmes for the youth. ICDI provides advisory and management services to the Central government, state governments and Industries for development of common infrastructure and facilities in Brownfield and Greenfield industrial clusters.
STAMP provides assessment solutions on a lifecycle approach to students, youth (job seekers) and working professionals.