Tree House Education, Zee Learn dip on board's nod for merger

Tree House dipped 5% at Rs 196, while Zee Learn down 3% to Rs 39.75, falling nearly 10% from intra-day high of Rs 44 on the BSE.

Shares of Tree House Education & Accessories and Zee Learn were trading lower on the bourses after the board of directors of both these companies approved scheme of amalgamation.

Tree House Education & Accessories has locked in lower circuit of 5% at Rs 196 on the BSE with no buyers on the counter. Till 10:01 a.m. a combined 479,369 shares changed hands and there were pending sell orders for 141,865 shares on the BSE and NSE.

Zee Learn has dipped 3% to Rs 39.75, falling nearly 10% from Rs 44, touched in early morning trade on the BSE. The trading volumes jumped more than two-fold with a combined 2.25 million shares changed hands on the BSE and NSE so far.

Under the scheme, Tree House Education & Accessories will merge with Zee Learn subject to shareholders and regulatory approval.

“Both Zee Learn and Tree House are in similar line of business activities i.e. business pre-school and with a view to consolidate the business operations, the board of directors of the company decided to amalgamate Tree House with Zee Learn,” Tree House said in a statement.

Tree House shareholders will get 53 fully paid equity shares of Re 1 each of Zee Learn for every 10 equity share of Rs 10 each held in the company. Tree House will be wound-up pursuant the scheme becoming effective, it added.