The merger application between Aakash and Byju’s has been retracted
During the National Company Law Tribunal (NCLT) listening to hung on Tuesday, Think and Learn, the parent enterprise of Byju’s, and Aakash Educational Services Ltd (AESL) have opted to retract their merger petition.
According to a spokesperson from Byju’s, "The choice to withdraw the merger utility become a prearranged and together agreed upon method. Both entities were operating independently under the Think and Learn brand and will continue to do so. The complaints at NCLT had been merely procedural to meet vital formalities."
The merger was to begin with planned as a part of a coins-and-inventory deal, in which Byju’s, amidst its challenges inside the edtech industry, received the brick-and-mortar take a look at preparation company for $940 million.
In April 2021, Byju’s completed the acquisition of Aakash in a transaction comprising 70% cash and 30% equity. This arrangement entailed that the promoters of Aakash, the Chaudhry family, along with private equity firm Blackstone, would receive shares of Think & Learn. The share swap was intended to finalize the acquisition deal.
However, the share-swap process has encountered a hurdle as the Chaudhry family, founders of AESL, have declined to exchange their remaining stake, citing governance concerns. Byju’s has subsequently issued a legal notice to the founders of the test preparation chain, alleging their reluctance to fulfill the share swap agreement.
