The Hindu Business Line
Zee Learn withdraws from merger with Tree House
Zee Learn Ltd has announced the withdrawal of its merger with Tree House Education and Accessories Ltd.
The company board said that in the light of recent inordinate developments at Tree House, it is withdrawing from the proposed merger process, which had been awaiting various court-, and shareholder-related statutory approvals.
The ZLL Board in its meeting held on Friday took cognizance of the recent adverse media reports on Tree House abruptly closing down hundreds of its playgroup centres, leaving parents/students high and dry, and of many parents filing police complaints against Tree House and its promoters.
The board felt that this may change the complete business dynamics of Tree House, and that it is not in the spirit of the scheme of amalgamation signed between ZLL and Tree House.
This fact, coupled with the steadily deteriorating financials of Tree House, allegations of irregularities by Tree House/its Promoters, and the need to protect the interest of ZLL shareholders, led to the board of ZLL to unanimously agreeing to withdraw from the merger process.
The board approved sending requisite communication to Tree House to this effect and conveying to them that ZLL reserves its rights to initiate further suitable action against Tree House/its Promoters for ZLL’s loss of reputation/goodwill and damages.
ZLL, a company promoted by Essel group, runs Asia’s largest playschool chain (Kidzee) with 1,600-plus centres.