Info Edge to sell shares in Meritnation to Aakash Educational Services for Rs 50 cr

Info Edge (India) Ltd on Friday said it will divest its total shareholding in Applect Learning Systems (Meritnation) to Aakash Educational Services for Rs 50 crore.

"...the company has, pursuant to the authorisation given by the Board of Directors on recommendation of the Audit Committee, entered into an agreement for divestment of its total shareholding, on fully converted and diluted basis, (including holding through its wholly owned subsidiary) in Applect Learning Systems Pvt Ltd (Meritnation)," a BSE filing said.

The shareholding has been agreed to be bought by Aakash Educational Services Ltd (AESL), which is one of India's largest medical test preparation providers, it added.

The filing did not disclose the number of shares involved in the transaction.

AESL has over 200 centres across 130 cities, teaching about 2.5 lakh students.

"Taking into consideration the independent valuation report, the sale value of the investment is determined as about Rs 50 crore," the filing said.

The transaction is expected to be completed by March 31, 2020, it added.

Meritnation delivers study material for students of kindergarten to class 12 (K-12). Its total sales in 2018-19 stood at Rs 34.76 crore.