Tree House Education has been locked-in at lower circuit

Owing to the news of Tree House Education shutting down its schools in certain parts of the country, and subsequently due to Zee Learn scrapping up its planned merger with the education provider, stock price of Tree House education is on the decline.

As per widespread media reports, Tree House Education was closing down its schools in various locations amidst deteriorating finances of the company, which led them to closing of the schools.

Post the reports, Zee Learn has informed the exchanges that the board of directors of the company took cognisance of the recent adverse media reports of Tree House closing down hundreds of its playgroup centres abruptly and leaving parents / students in a limbo, and the board unanimously agreed to withdraw the merger process with Tree House.

In a clarification to exchanges, Tree House in a statement to the exchanges on Monday, December 19, 2016 declined all the media reports of the company shutting down schools and blamed Zee Learn for all the mess being created regarding the merger. Company also informed of taking legal measures against Essel Group, which is a promoter of Zee Learn.

Reacting to this, Tree House stock has tanked more than 40 per cent in the last few trading sessions. Currently the stock is locked in at lower circuit at Rs 19.10 on NSE.