10 months ago
Manipal Group Expresses Interest in Acquiring BYJU's Assets Amid Insolvency
Imagine BYJU's is like a big toy company that has a special smaller company called Aakash that teaches kids.
BYJU's owns a part of Aakash.
But BYJU's has gotten into some money trouble and is in a process to sort out its debts.
Now, a different company, called Manipal Group, led by a person named Ranjan Pai, has said they might want to buy BYJU's and all its parts.
What they really want is BYJU's part of the Aakash teaching company.
Ranjan Pai has already helped BYJU's before by paying off some of its debts so he could keep some Aakash shares.
The process to decide who might buy BYJU's is ongoing, and other companies are still thinking about it.
Manipal Education & Medical Group (MEMG), led by Ranjan Pai, has reportedly submitted an expression of interest to acquire assets of BYJU's parent company, Think & Learn Pvt Ltd.
MEMG's primary interest is in acquiring BYJU's 25% stake in Aakash Educational Services Limited (AESL).
BYJU's is currently undergoing insolvency resolution proceedings, with the deadline for submitting expressions of interest extended to November 13, 2024.
Ranjan Pai had previously invested in Aakash and paid off $170 million in debt for BYJU's, securing a 40% stake in AESL.
The Supreme Court recently dismissed a plea to block Aakash from proceeding with a rights issue, which could dilute BYJU's stake to 5%.
- Who
- Manipal Education & Medical Group (MEMG), led by Ranjan Pai
- What
- Submitted an expression of interest (EoI) to potentially acquire assets of BYJU's parent company, Think & Learn Pvt Ltd., with a primary focus on BYJU's 25% stake in Aakash Educational Services Limited (AESL).
- Where
- India (BYJU's parent company and Aakash Educational Services Limited)
- When
- Recent development, with the EoI deadline extended to November 13, 2024.
- Why
- BYJU's is undergoing insolvency resolution proceedings, and MEMG is exploring the acquisition of its assets, particularly its stake in Aakash.
Manipal Group (MEMG)
BYJU's and Lenders
Acquisition of Aakash Stake
Manipal Group (MEMG)
MEMG is primarily interested in acquiring BYJU's 25% stake in Aakash Educational Services Limited (AESL) as part of a larger potential acquisition of BYJU's assets.
BYJU's and Lenders
BYJU's and its US-based lenders have attempted to block Aakash from proceeding with a rights issue that could dilute BYJU's stake to 5%, potentially impacting the value of the Aakash asset.
Prior Investment and Debt
Manipal Group (MEMG)
Ranjan Pai (MEMG chairman) previously invested around $300 million in AESL and paid off a $170 million debt that had Aakash shares as collateral, making him the largest shareholder with a 40% stake.
BYJU's and Lenders
BYJU's acquired a majority stake in Aakash for $1 billion in 2021 but has since struggled with debt repayment, pledging Aakash shares to raise further funds.
Key facts
- Potential Bidder
- Manipal Education & Medical Group (MEMG), led by Ranjan Pai
- Target Company
- Think & Learn Pvt Ltd. (BYJU's parent company)
- Key Asset of Interest
- BYJU's 25% stake in Aakash Educational Services Limited (AESL)
- Insolvency Resolution Process (CIRP) Start Date
- July 16, 2024
- Expression of Interest (EoI) Deadline
- November 13 (extended)
- Ranjan Pai's Investment in AESL
- Approximately $300 million, including a $170 million debt repayment
- Ranjan Pai's Current Stake in AESL
- 40%
Quotes
A source
An anonymous source familiar with the matter
“MEMG will look at all possible assets it can. Currently, it’s just an expression of interest indicating that they intend to bid. However, the main asset is the 25% stake that Think & Learn holds in Aakash as of today.”
inc42.com
