CL Educate Buyback 2023 vs Sinclairs Hotels Buyback 2023

The Buyback is being undertaken for the following reasons

(i) The Buyback will help the Company to return surplus cash to its shareholders holding Equity Shares;

(ii) The Buyback may help in improving return on equity, by reduction in the equity base, thereby leading to an increase in shareholders' value; and

(iii) The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares to be accepted under the Buyback offer or they may choose not to participate and enjoy a resultant increase in their percentage shareholding, post the Buyback offer, without additional investment.

The proposed Buy-back will help the Company achieve the following objectives:

1. To return surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to shareholders.
2. The Buy Back, which is being implemented through the tender offer involving a reservation for Small Shareholders of 15%. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders.
3. The Buy Back may help in improving return on equity.
4. The Buy Back gives an option to the shareholders holding Equity Shares of the Company, to either choose to participate and get cash in lieu of Equity Shares or choose not to participate and enjoy a resultant increase in their percentage shareholding.