Ranjan Pai's Manipal Education & Medical Group (MEMG) has reportedly submitted an express of interest (EoI) to BYJU'S insolvency resolution professional (IRP) amid its bankruptcy proceedings.
As per a report by ET, MEMG is looking to buy all assets of BYJU'S parent Think & Learn Private Limited, with a specific interest in BYJU'S main asset, that is, 25% stake in Aakash Educational Services Limited (AESL).
"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," one of the sources told ET.
The development comes shortly after the Supreme Court (SC) cleared Aakash's INR 200 Cr rights issue, potentially diluting BYJU'S stake to a mere 5%. A few days back, the Supreme Court dismissed the plea by BYJU's RP and Glas Trust, who represents the company's US-based lenders to block Aakash from proceeding with a rights issue.
Important to mention that BYJU'S IRP Shailendra Ajmera recently extended the deadline for submitting EoI for the sale of the company to November 13. As per the report, other potential bidders continue to weigh in their options ahead of the deadline for EOI submissions. The resolution professional may also consider extending the deadline if required.
The corporate insolvency resolution process (CIRP) for Think & Learn was initiated on July 16, 2024, and has been continuing since then. The BCCI and BYJU'S promoters withdrew the insolvency petition after a settlement was rejected by the Supreme Court (SC).
Inc42 has reached out to Shailendra Ajmera, IRP at BYJU's with queries. The story will be updated upon receiving responses.
BYJU's had acquired majority stakes in Aakash back in 2021 for about $1 Bn. But, since then, the edtech major has spiralled down, having pledged Aakash's shares to raise more funds in debt.
As BYJU's was unable to pay off its debt and fulfill its commitments, in 2023 chairman of MEMG, Ranjan Pai stepped intoBYJU'S quagmire and paid off $170 Mn debt that freed up 27% of Aakash's shares that were held as collateral. In total, Pai had invested about $300 Mn in AESL and currently is the largest shareholder in the company with 40% stake.