Subhash Chandra-controlled Zee LearnBSE 1.84 % is in talks with MT Educare, a Mumbai-based company that runs the popular Mahesh Tutorials coaching classes, to buy a controlling stake in the company, in a growing sign that a wave of fresh capital is triggering larger consolidation in the educational services space.
Zee initially plans to buy the entire promoter block of 42.78% and will make an open offer for another 20% stake, multiple sources told ET. Institutions and public shareholders own the remaining 57.22%. MT Educare, which went public in 2012, is a leading education services company that prepares students for competitive examinations. It had a market capitalisation of Rs 324 crore as on Friday. At current valuations, Zee will have to pay Rs 140 crore for a controlling stake in the company.
“Zee Media has had multiple rounds of formal negotiations with MT Educare management. A transaction is highly likely before fiscal-end,” said one of the sources.
When contacted, Zee declined to comment. MT Educare chairman and CEO Mahesh Shetty denied any transactions are in the offing.
