Tree House Education and Accessories (Tree House), one of the leading operators of pre-school chain, announced that the board of directors of the company have approved and executed the Memorandum of Understanding (MOU) for sale of its land and building located at Vadodara, Gujarat.
The particular property being considered for sale under this MOU is located at village Atladara, Vadodara, Guj4rat and represents one of fiveK-12 school land and building premises fully or partly owned by Tree House. The company plans to monetize its physical assets while continuing to provide educational services to these institutions.
Commenting on the development, Rajesh Bhatia, managing director of Tree House, said, ''This is the first step towards monetizing oul investments in physical assets of K-12 schools and moving towards monetizing our investments in physical assets of K-12 schools and moving towards an asset-light operating structure. In addition to today's announcement, we are in discussion for our other assets also and will use the proceeds to move towards a debt free status and deliver strong returns to all shareholders from the strong cash flows generated by the business.''
Shares of the company declined Rs 1.7, or 0.41%, to trade at Rs 412.90. The total volume of shares traded was 7,511 at the BSE (9.59 a.m., Monday).