Core Eductaion & Technologies is planning to buy Rakesh Jhunjhunwala's stake in Aptech Limited

Last Dec, Rakesh Junjhunwala announced plans to sell his six year old investment in Aptech Ltd and appointed Avendus to handle the sale process.

According to a report on ToI, Avendus Capital approached a list of potential suitors including TeamLease and Manipal Universal Group.

As on September 2011, Jhunjhunwala with his investment vehicle Rare Equity Pvt Ltd and his family owns 31.19% stake in Aptech.

Jhunjhunwala is seeking a valuation of about R700Cr for his stake. Rakesh Jhunjhunwala had bought his stake for R81Cr from Chennai based Kalpathi Suresh - founder of IT training firm - SSI.

If the transaction goes through, it will the third change in Aptech's ownership. Aptech was founded in 1984 by Atul Nishar. Atul sold off Aptech to Kalpathi, who later merged SSI's education business with Aptech. Kalpathi then sold it to Jhunjhunwala two years later.

It provides retail and corporate training solutions. Aptech has a network of over 1000 centres spread over 35 countries, Aptech already owns well-recognized education brands, namely, Aptech Computer Education, Arena Animation, N-Power, Avalon Academy, English Express and Aptech Worldwide.

Founded in 2003, Mumbai based CORE Education and Technologies was formerly known as Core Projects and Technologies. It offers technology-based education solutions to government organisations and schools in the US and the UK. The company has acquired nine companies in the UK and the US in the past five years in an effort to expand its global reach.

It acquired Georgia based - Technical Systems Integratoss LLC and New York based Keenan and Keenan Group in September 2010, for a total of $25 Mn. In 2009, CORE acquired K-12 division of Princeton Review, a US-based education company for $20 Mn.

The company is planning to tap Asia-Pacific, Africa and West Asia and may look at acquisitions in these regions. It is also planning to start operations in Singapore and China.

Performance of Core Education On BSE

The current market cap of the company is R2196Cr.

It plans to open 30 schools, including some offering the international baccalaureate curriculum, with an initial investment of R450Cr. It is also bidding to set up 50 schools in partnership with the Rajasthan government.

The company has got a R119Cr contract in Maharashtra to implement information and communication technology projects in 947 schools. In Gujarat, it has won a R36Cr order for around 600 schools, while it is also helping some 75 schools in Nagaland become ICT-enabled.

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