Education solutions provider Educomp Solutions has sold its entire 50 percent stake in Eurokids International to a group of investors led by GPE India for an undisclosed sum. “This transaction is an important milestone for the business transformation agenda that is currently underway,” said Educomp Solutions Ltd. chairman and managing director Shantanu Prakash in a statement on March 26.
While he did not disclose the financial details of the deal, Prakash said: “Educomp has made 3 times its original investment in Eurokids and has created significant value for its shareholders by making a profit of approximately Rs.70 crore on this investment.” The company is pursuing a business transformation agenda that seeks to focus on core businesses of digital content offerings and asset-backed offerings and monetise the non-core assets to unlock value, said the company.
Earlier in the year, Educomp had sought growth capital investment of Rs.22 crore in its internet education platform business Authorgen, from Kaizen PE and Bertelsmann. “The completion of the Eurokids transaction is the second milestone in our asset monetisation strategy. The proceeds from the transaction will be ploughed back into our core businesses as well as used to de-lever our balance sheet,” said Educomp Solutions.