As part of a stock-swap deal related to the 2021 acquisition of Aakash Educational Services Limited (AESL) by BYJU’S parent company, Think and Learn Pvt Ltd, Aakash Chaudhry, co-promoter and co-founder of AESL, could return as the CEO, reports suggest.
This arrangement is likely linked to the finalization of a stock-swap deal with BYJU’S parent company, Think and Learn Pvt Ltd, as part of AESL’s acquisition about two years ago, The Economic Times reported.
In 2021, BYJU acquired AESL for approximately $950 million, with a significant portion paid in cash and the rest to be adjusted against Think and Learn’s equity. The Chaudhry family and private equity firm Blackstone Group collectively own a 30% stake in AESL, with Think and Learn holding 43% and its founder, Byju Raveendran, holding 27%. Recent reports indicate that the Chaudhry family and Blackstone declined to exchange their equity holdings in the test preparation subsidiary unit for Think and Learn Pvt Ltd shares.
According to The Economic Times, ongoing discussions suggest that Chaudhry may retain about 9% of AESL and end up with approximately 8% in Think and Learn after resolving the shareholding issue. Think and Learn is expected to own a minimum of 51% of AESL after the transaction’s finalization, scheduled for this month.
Meanwhile, Ranjan Pai, Chairman of Manipal Education and Medical Group, is considering an investment of $250 million to $300 million in AESL. Following this transaction, Raveendran’s stake in AESL is anticipated to decrease to around 12%. In September, BYJU ’s-owned AESL established an executive council to appoint new leadership, including a CEO and a CFO, after the departures of Maheshwari and Vipan Joshi, respectively.
These developments coincide with the final stages of a business restructuring exercise led by BYJU’s new CEO, Arjun Mohan. This restructuring aims to simplify operating structures, reduce costs, and improve cash flow management. Additionally, the company is addressing its $1.2-billion term loan B debt repayment and exploring asset sales, including Epic and Great Learning, to generate a minimum of $800 million.
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BYJU is expected to release its audited FY22 earnings report in October.
