Tree House, Zee Learn revise swap ratio

The Tree House Education's board approved a revised merger deal with Zee Learn on Wednesday in the ratio of 1:1.

According to an earlier plan, for every 10 shares held in Tree House, a shareholder would have received 53 shares of Zee Learn.

Both the companies issued statements to stock exchanges saying confirming the new share swap ratio.

The promoters of Tree House had sold nearly 10 per cent equity stake in the open market since December 2015, when merger talks began.

The new terms of merger for Tree House are 80 per cent lower in valuation compared with the earlier deal.

Zee Learn stated: "The revised scheme of amalgamation will put to rest uncertainty and anxiety within different stakeholders. It will help mitigating the recent developments in operational performance of Tree House Education over the past few quarters and further strengthen Zee Learn's position in the educational landscape."

Tree House said it would benefit as the synergies arising out of the amalgamation would strengthen its business and improve operational efficiencies.