A long-running legal battle involving embattled edtech company BYJU’S may finally be nearing a resolution. The company’s global lenders are in advanced discussions to acquire a 30% stake in Aakash Educational Services, one of India’s largest offline coaching chains, as part of a comprehensive settlement aimed at ending multiple legal disputes.
The proposed agreement is linked to BYJU’S default on its $1 billion Term Loan B, which triggered legal proceedings across India, the United States and Singapore. Under the settlement, lenders represented by Glas Trust are expected to withdraw all lawsuits against founder Byju Raveendran and other related parties if the deal is successfully completed.
People familiar with the negotiations said the talks are in the final stages, although the exact structure of the transaction is still being worked out. Aakash, acquired by BYJU’S for nearly $1 billion in 2021, is currently valued at around $2 billion, making it the group’s most valuable remaining asset. The proposed stake transfer would give lenders a significant ownership position while helping bring years of litigation to an end.
The ownership structure of Aakash has changed considerably over the past year. Manipal Education and Medical Group has increased its holding to around 60%, emerging as the largest shareholder. If the proposed settlement goes through, lenders would become another major shareholder, while BYJU’S stake would reduce further. Industry experts believe this could provide greater stability to Aakash, which has largely remained operational despite the financial troubles of its parent company.
For BYJU’S, once India’s most valuable startup with operations in more than 20 countries, the agreement could mark a significant turning point. The company has faced financial distress, insolvency proceedings and several court battles over the past three years, leading to a sharp decline in its business and valuation.
While the settlement has not yet been finalised, both sides are reportedly keen to avoid further legal battles.
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