Competition Commission of India gave a green signal to Manipal Health Systems and MEMG Family Office for the proposed buyout of a stake in Aakash Educational Services
ET reported that the board of Aakash has given the nod to the conversion of $300 Mn investment made by Pai in 2023 into equity
Earlier this year, Aakash Institute was set to see Pai emerge as its largest shareholder with a 40% stake buyout
The Competition Commission of India has given a green signal to Manipal Health Systems and Ranjan Pai’s MEMG Family Office LLP for the proposed buyout of a stake in BYJU’S-owned Aakash Educational Services.
The CCI confirmed its approval of the acquisition deal through a post on X.
Earlier, ET reported that the board of Aakash has given the nod to the conversion of $300 Mn investment made by Pai in 2023 into equity.
Earlier this year, it was reported that Aakash Institute was set to see Pai emerge as its largest shareholder with a 40% stake buyout.
However, an arbitrator asked BYJU’S
to not sell 4 Mn shares of its subsidiary Aakash Educational Services, in April.
The order came in response to MEMG Family Office initiating arbitration proceedings against the edtech startup over breach of terms of a $42 Mn loan, earlier this year.
During the arbitration proceedings, BYJU’S said it couldn’t allot the shares as it failed to obtain approvals from certain investors in time for the transfer of shares to MEMG Family Office.
While the edtech giant BYJU’S is yet to release its FY22 financial report card, its crown jewel – Aakash Educational Services Ltd (Aakash), saw its profit widen by 82% to INR 79.5 Cr in FY22. This marks a significant improvement compared to the INR 43.6 C profit it reported in FY21 on a standalone basis.
(The story will be updated soon)
