Manipal Group Acquires Stake in Aakash Educational Services

New Delhi, Jul 23 (PTI) The Competition Commission of India on Tuesday said it has given its nod to Manipal Health Systems and Ranjan Pai's MEMG Family Office LLP for the proposed acquisition of a stake in Byju's owned-Aakash Educational Services.

Manipal Health Systems operates hospitals and provides healthcare services, while MEMG (Manipal Education and Medical Group) Family Office LLP belongs to the Pai Family Group which offers consultancy services.

"The transaction relates to the allotment of identified equity stake in the Target (Aakash Educational Services Ltd) to the Manipal Health Systems," CCI said in a release.

Aakash Educational Services Ltd (AESL) provides coaching services. It offers these services through various modes, including, classroom-based coaching, online learning, distance learning, and hybrid learning programmes.

"The right to seek transfer of certain equity shares of the target," the release added.

In January this year, the Aakash board had cleared the conversion of Ranjan Pai's USD 300 million investment made during 2023 into equity, according to reports.

In November 2023, Ranjan Pai acquired Davidson Kempner's debt exposure in AESL for Rs 1,400 crore. This provided relief to Bengaluru-based Byju's, which has been grappling with legal and financial woes.

Byju's parent company Think & Learn, which had been going through a rough phase, had acquired AESL for USD 950 million in 2021. It marked one of the largest acquisitions by the edtech major.

Last week, the Bengaluru bench of the National Company Law Tribunal (NCLT) allowed bankruptcy proceedings against Byju's and appointed an interim resolution professional, suspending the company's board of directors and freezing its assets. Byju's has challenged the order in the appellate tribunal NCLAT.

The company had failed to pay Rs 158.9 crore to cricket board BCCI. It had previously sponsored the Indian cricket team.