A report recently claimed that the founder of Manipal Hospitals Group, Ranjan Pai made an offer to Byju’s parent company Think & Learn Pvt Ltd. As per the sources, Ranjan Pai offered around Rs 300 crore as a financial facility as part of a broader transaction that would partially exit the Chaudhary family from Aakash Educational Services Ltd. Sources who are familiar with the development claimed that Ranjan Pai is likely to give Rs 300 crore to Think & Learn Pvt Ltd to facilitate a partial exit for the Chaudhry family. If this deal takes place, the total investment of Manipal Hospitals Group in Byju’s parent might cross $300 million. You need to know more about this development. Kindly drag down the page and unfold more in-depth details. Scroll down the page.
Since Ranjan Pai offered a financial facility of Rs 300 crore to Byju’s parent, it is being speculated that the overall investment of Pai’s group would reach $300 million if all the pieces of the deal fall in place. However, a person familiar with the development said some parts of the deal are still being negotiated. It will be a short-term financial facility for Byju’s parent which means Rs300 crore will plug Byju’s working capital and cash flow requirements. Continue reading this article for more details.
In the past few months, Byju’s cut back on senior employees to lower its working capital needs. Nevertheless, Byju laid off around 4000 employees in September to reduce its working capital. Therefore, Pai’s offer of Rs300 crore will assist the learning group in repaying the loan amount taken by the US-based investor group, Davidson Kempner. Kindly note that the loan was sanctioned on the term against the cash flows of Aakash Educational Services. Drag down the page and read more details.
In May this year, Investor group Davidson Kempner offered a loan of Rs2,000 crore but has transferred only Rs800 crore to the online tutor company. The full loan was not given because Think & Learn breached certain covenants by escalating litigation with its overseas term loan lenders. Ranjan Pai’s investment into Aakash will help repay this Rs800 crore back to the US-based investor group Davidson Kempner, along with Rs600 crore in interest. It may resolve a thorny issue for the Byju’s. Notably, this deal will also lead Aakash’s founding family to swap a part of their shares in Aakash to Think & Learn. Stay tuned to this website.