 "A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai (pic: Reuters)")
Tree House Education & Accessories has fallen to its fresh 52-week low of Rs 58 on the BSE in intra-day trade on Thursday after the company announced that Zee Learn has decided to keep on hold the scheme of amalgamation of the company as per the share exchange ratio agreed upon. The stock dipped 9% from its early morning high of Rs 64.
“Zee Learn will not be going ahead with the currently agreed share exchange ratio of 53 fully paid equity shares of Rs 1 each of Zee Learn for 10 fully paid equity shares of Rs 10 each of Tree House,” Zee Learn said in a statement to BSE.
Re-constitution of the Merger Evaluation Committee (MEC) with the authority to look into and suggest ways to salvage the deal with Tree House which will best keep the interest of Zee Learn's stakeholders intact, it added.
Zee Learn said that the company’s board meeting decided that Tree House March 2016 quarter (Q4FY16) results require careful evaluation and potential impact of the same, if any, "on the scheme of amalgamation of it with the company needs to be properly evaluated."
The stock of Tree House has tanked 27% in past four trading sessions from Rs 79 on May 27, after the company reported net loss of Rs 35 crore in Q4FY16 against profit of Rs 17 crore in a year ago quarter.
The company has said that due to current economic conditions, consumer spends are weak and sluggish while bad monsoon and drought conditions in most states have worsened situation further.
Post Q4 results, the foreign investors - Morgan Stanley Asia (Singapore) and JTSB Limited STB Daiwa India Stock Active Mother Fund – had collectively sold 497,565 shares of Tree House through open market.
At 10:18 AM, Tree House was down 1.6% at Rs 60.30 on the BSE with a combined 1.32 million shares changed hands on the BSE and NSE.
Zee Learn was up 3% at Rs 29.70, after hitting intra-day high of Rs 31 on the BSE. A combined 794,456 shares changed hands on the BSE and NSE so far.
“Zee Learn will not be going ahead with the currently agreed share exchange ratio of 53 fully paid equity shares of Rs 1 each of Zee Learn for 10 fully paid equity shares of Rs 10 each of Tree House,” Zee Learn said in a statement to BSE.
Re-constitution of the Merger Evaluation Committee (MEC) with the authority to look into and suggest ways to salvage the deal with Tree House which will best keep the interest of Zee Learn's stakeholders intact, it added.
Zee Learn said that the company’s board meeting decided that Tree House March 2016 quarter (Q4FY16) results require careful evaluation and potential impact of the same, if any, "on the scheme of amalgamation of it with the company needs to be properly evaluated."
The stock of Tree House has tanked 27% in past four trading sessions from Rs 79 on May 27, after the company reported net loss of Rs 35 crore in Q4FY16 against profit of Rs 17 crore in a year ago quarter.
The company has said that due to current economic conditions, consumer spends are weak and sluggish while bad monsoon and drought conditions in most states have worsened situation further.
Post Q4 results, the foreign investors - Morgan Stanley Asia (Singapore) and JTSB Limited STB Daiwa India Stock Active Mother Fund – had collectively sold 497,565 shares of Tree House through open market.
At 10:18 AM, Tree House was down 1.6% at Rs 60.30 on the BSE with a combined 1.32 million shares changed hands on the BSE and NSE.
Zee Learn was up 3% at Rs 29.70, after hitting intra-day high of Rs 31 on the BSE. A combined 794,456 shares changed hands on the BSE and NSE so far.
