The US private equity firm KKR, which recently acquired 92 percent stake in EuroKids in September, has made a non-binding offer for Zee Learn, especially Kidzee, and is waiting for a response, the report said.
EuroKids owns the Kangaroo Kids and Billabong International school chains.
Kidzee, established in 2003, is Asia’s largest network of preschools.
Moneycontrol could not independently verify the story.
The transaction could help Essel Group, which owns Zee Entertainment Enterprises, deleverage its consolidated balance sheet, sources told the paper.
Promoters of Essel Group owe about Rs 7,000 crore to lenders.
An Essel group spokesperson told The Economic Times that the company is “actively evaluating” offers received by suitors.
“The divestment of Zee Learn Ltd is in line with the overall asset divestment process undertaken by the group,” the spokesperson added.
The deal is expected to see Kidzee hived off as a separate entity after a demerger from the parent company, the report said.
Adding Mount Litera school chain to the negotiations might take some time, since the Zee Group cannot afford to lose it at this time, a source told the publication.
Zee Entertainment chief executive officer Punit Goenka said in October that promoters might divest their stake in Zee Learn. The company was evaluating offers from marquee investors, both financial and strategic, he had said.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
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