The IL&FS Group has sold 73.69% stake in its education business, held under Schoolnet India Ltd. (SIL), to Falafal Technologies Pvt. Ltd. (FTPL).“The transaction provides positive equity value to IL&FS and resolves nearly ₹650 crore of consolidated fund-based and non-fund- based financial debt, without any haircut to lenders,” the IL&FS Group said.The sale was completed following the approval given by the National Company Law Tribunal (NCLT). FTPL has paid ₹7.4 crore as equity value for shares of SIL held by IL&FS Ltd. and IL&FS Employee Welfare Trust in addition to taking over SIL’s fund-based and non-fund based financial debt of almost ₹650 crore. FTPL has also agreed to a deferred consideration of ₹6.3 crore payable within 18 months from the closure of the transaction. Sale of SIL will cut IL&FS Group’s operating cost for by almost 19%. Besides, the businesses of its wholly owned arms ICDI and STAMP have also been transferred to SIL through a slump sale for ₹1 each. Transfer of debt of almost ₹27 crore in ICDI and STAMP forms part of the sale. Further, the shares of ICDI and STAMP have been transferred to IL&FS Ltd. SIL will continue to retain 80.01% in ISDC which will become a step down subsidiary of FTPL. “This development represents another key milestone in the overall resolution for the IL&FS Group under the new board,” IL&FS Group said in a statement.As part of the overall resolution plan to address a significant portion of the Group’s debt, the sale of a number of other Group assets has been initiated which is currently in various stages of progress, it added.
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