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Arihant Academy Approves Business Acquisition of Team Arihant Carmel Academy LLP
Team Finance Saathi
28/Dec/2024
What's Covered in the Article:
- Arihant Academy’s approval of business acquisition through slump sale.
- Details of the related party transaction and its impact.
- Extraordinary General Meeting (EGM) scheduled for January 23, 2025, to approve the acquisition.
Arihant Academy Limited has announced the approval of a significant business acquisition through a slump sale of Team Arihant Carmel Academy LLP, a related party entity engaged in providing educational services. The decision was taken during a Board meeting held on Saturday, December 28, 2024, at the company’s registered office in Mumbai, and the approval was made subject to shareholder consent in the upcoming Extraordinary General Meeting (EGM).
Acquisition Details: The company plans to acquire Team Arihant Carmel Academy LLP on a going concern basis, which will involve the entire business of the academy for a lump-sum cash consideration of INR 3,00,00,000 (three crores). The acquisition will primarily focus on education services, particularly for Science XI, XII, and competitive exams like IIT JEE, NEET, and MHT-CET. The transaction will contribute to expanding Arihant Academy’s reach and strengthening its educational offerings under the established brand name of Arihant Academy.
Related Party Transaction: The acquisition involves a related party transaction since two of the directors of Arihant Academy Limited, Mr. Anil Suresh Kapasi and Mr. Umesh Anand Pangam, are also designated partners in Team Arihant Carmel Academy LLP. However, the transaction is confirmed to be conducted on an arm’s length basis, ensuring fair terms for all parties involved.
Extraordinary General Meeting (EGM): To seek approval for this related party transaction, an Extraordinary General Meeting (EGM) has been scheduled for January 23, 2025, at 5:30 PM at the company’s registered office. This meeting will also discuss the approval of the draft notice for the EGM and the appointment of M/s Dilip Swarnkar & Associates, Practicing Company Secretaries, as the scrutinizer for the voting process.
Financial Performance of Team Arihant Carmel Academy LLP: The acquisition is expected to enhance the business performance of Arihant Academy Limited, thanks to the operational synergies with the existing educational services of the LLP. Team Arihant Carmel Academy LLP has shown consistent growth, with a turnover of INR 494.31 Lakhs as of March 2024. The academy has also demonstrated steady performance over the past three years, contributing positively to its educational mission.
Next Steps and Regulatory Approval: The transaction is set to be completed within 15 days after approval by shareholders at the EGM. No additional governmental or regulatory approvals are required for this acquisition. Once concluded, this move is expected to solidify Arihant Academy’s position in the educational sector, providing additional avenues for growth in a highly competitive industry.
In conclusion, this acquisition marks a significant step forward for Arihant Academy Limited, positioning the company to expand its operations and diversify its offerings in the field of education. Shareholders and investors are urged to stay updated on the developments surrounding the EGM and the approval process.