Intel sells NIIT stakes, gains Rs.1.5 billion

Intel sells NIIT stakes, gains 1.5 billion

By SiliconIndia   |   Friday, 29 June 2007, 07:00 Hrs
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New Delhi: Intel Capital, the venture capital arm of chipmaker Intel, is reported to make a profit of Rs 1.5 billion by selling almost its entire stake in IT education firm, NIIT. According to market sources, Intel Capital sold its 9.4 percent stake in NIIT to Orient Global, a Singapore-based investment group founded by Richard Chandler, for 1.9 billion at 950 a share.

In 2005, NIIT had issued 2.18 million foreign currency convertible bonds worth 410 million to Intel Capital (Cayman). The bonds were recently converted into equal number of shares at Rs 200 a piece or a total of about Rs 430 million, reported Business Standard. Professor James Tooley, President of the Education Fund (through which the shares were bought), said: "Orient Global Education Fund is investing in a leader in the education industry that is pushing forward the frontiers of innovation in content development and delivery." Orient Global established The Education Fund in February 2007. It is focused on developing and strengthening entrepreneurial solutions that improve the availability and quality of education in developing countries.

NIIT offers learning and knowledge solutions across 32 countries. It had acquired a learning solutions company last year, Element K, which helped NIIT to record a consolidated profit after tax (PAT) of Rs 171 million in the fourth quarter ending March 2007. An NIIT spokesperson said: "These are secondary market transactions, which we are not concerned with, however it is a positive sign for us as it shows the buoyancy in the share."

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