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Potential buyers will have the option to acquire either the entire Think and Learn or select assets of the company, including its stake in Aakash and other businesses such as GeoGebra, WhiteHat Jr and Toppr.
Ranjan Pai's Manipal Education and Medical Group (MEMG) has emerged as a potential bidder for edtech firm Byju's bankrupt parent company Think and Learn, people aware of the development said. "MEMG will look at all potential assets on its own. Currently, this is only an expression of interest indicating its intention to bid.
However, Think & Learn's main asset to date is its 25% stake in Aakash, which the people said is the largest shareholder of Manipal coaching centre operator Aakash Educational Services, where it has steadily increased its stake to 58%. Potential buyers will have the option to acquire either the entire Think & Learn business or select assets of the company, including its stake in Aakash and other businesses such as GeoGebra, WhiteHat Jr and Toppr."
Shailendra Ajmera, the resolution professional at Think & Learn, has extended the deadline for submitting expressions of interest (EOIs) from September 24 to November 13. People who spoke to ET said the resolution professional expected several potential buyers to express interest in acquiring Byju's assets, but MEMG was the only one to submit an EOI.
A person familiar with the development said the deadline was extended to attract more bidders. The bank guarantee requirement was also reduced from Rs 5 crore to Rs 1 crore to attract more participation. Pai declined to comment. Questions sent to Ajmera remained unanswered by press time on Wednesday. While MEMG is trying to increase its stake in Aakash, Think & Learn is looking to secure its stake in the coaching center operator, which is considered its most valuable asset.
Byju's acquired Aakash in 2021 for $950 million, but is facing a cash crunch amid the post-COVID slowdown in its business. This meant that the edtech firm could not retain its majority stake. In May 2023, Byju's raised ₹2,000 crore from US-based Davidson Kempner by issuing non-convertible debentures against Aakash's cash flow. In November of that year, Pai invested ₹1,400 crore in Aakash, purchasing all the non-convertible debentures held by Kempner. In January 2024, Manipal became the largest shareholder in Aakash Institute with a 40% stake after converting debentures into equity.
Recently, bankruptcy tribunals and the Supreme Court have refused to interfere in the coaching center operator's business. Aakash shareholders approved a proposal to increase the company's authorized share capital on October 29, a crucial step before launching a rights issue. The issue, which opens on November 3 and closes on November 17, will reduce Think & Learn's shareholding from 25.75% to 25.75%. Will tax 6.125%.
Glass Trust, which represents Byju's US lenders and Think & Learn, had opposed the rights issue plan in the courts, arguing that it was part of a series of illegal actions taken by Think & Learn as a whole. Glass Trust holds 99.41% of the voting shares in Think & Learn's creditors' committee.
Meanwhile, several top-level employees at Aakash are exiting amid efforts to raise funds to keep the business afloat. The most recent departure is that of Chief Financial Officer Vipan Joshi, following the resignation of Managing Director and CEO Deepak Mehrotra in August after holding the position for over a year. Aakash last reported its financials for FY22, when it reported an 82% increase in profit to ₹79.5 crore and a 45% increase in operating revenue to ₹1,421 crore.
Byju's Legal Battle
Think & Learn is currently in the midst of bankruptcy proceedings, which began last year after the Board of Control for Cricket in India (BCCI) moved the NCLT to recover ₹158 crore owed by the company for a sponsorship deal. The Appellate Bankruptcy Tribunal approved a settlement in August 2024 after co-founder Riju Ravindran agreed to pay the money to the BCCI.
Think & Learn, an edtech company once valued at $22 billion, has acquired more than 15 companies, most of them during the pandemic due to the rapidly growing demand for online education.
In June, ET reported that Byju's is selling its US assets for a fraction of what it paid to acquire them, as creditors seek to recover their dues from the edtech firm, whose US operations are undergoing bankruptcy proceedings.
