Educomp sells entire stake in Wiz Learn Technology to repay its debt

Shares of Educomp Solutions spiked 20% intraday on Monday after its subsidiary sold entire stake in Singapore-based company, although the amount was not disclosed.

According to Educomp Solutions, it has sold entire stake in Wiz Learn Technology to V-cube Global Services and the proceeds of the acquisition will be used to repay existing debt to Axis Bank.

V-cube Global Services is a subsidiary of V-cube Japan Group and holding company of APAC region.

The company said in its Bombay Stock Exchange (BSE) filing: "Educomp Intelliprop Ventures Pte Ltd, subsidiary of Educomp Solutions Ltd, has sold its entire stake in Wiz Learn Technology Pte Ltd, Singapore to V-cube Global Services Pte Ltd."

"Further, corresponding to such sale the investment of Wiz Learn Technology Pte Ltd in three subsidiaries naming Singapore Learning.com Pte Ltd, Pave Education Pte Ltd and Wiz Learn Pte Ltd will also get sold," the company added.

In 2007, Educomp Solutions has invested in Wiz Learn Technology Pte Ltd.

While the company did not elaborate on the deal size or the percentage stake sold, it said "the present sale will yield a return of 57% on our original investment".

(Image: Indiatimes)