In a recent development, Blackstone-backed Singapore VII Topco I Pte. Ltd. has withdrawn its petition filed with the National Company Law Tribunal (NCLT) against Aakash Educational Services Limited (AESL). The petition challenged proposed amendments to AESL's Articles of Association (AoA), which Singapore Topco claimed would significantly dilute its 6.97% minority stake in the company. The NCLT has approved the withdrawal, though no specific reasons were provided for this decision.
The dispute centered around AESL's intention to modify its AoA, a move that Singapore Topco argued could undermine the rights of minority shareholders. Despite the withdrawal, representatives for BYJU'S US-based lenders, such as Glas Trust, expressed concerns that the changes might affect creditors' rights and sought interim protection. However, the NCLT declined to issue such an order.
This development follows BYJU'S acquisition of AESL in 2021 for approximately $950 million, a deal structured with a combination of cash and equity in BYJU'S parent company, Think & Learn Private Limited. Ranjan Pai's Manipal Group, holding a 40% stake, remains the largest shareholder in AESL.
The withdrawal of the petition may pave the way for AESL to proceed with its proposed amendments, potentially impacting the dynamics between majority and minority stakeholders within the company.
