EdTech firm BYJU'S, which has been holding one-on-one talks with its lenders for some months now, will repay the $1.2 billion term loan B within the next six months. It will clear the loan amount by selling Great Learning and Epic, which were acquired in 2021, sources informed The New Indian Express.
Sources added these two companies will fetch BYJU'S around $1 billion. The EdTech firm is also planning to raise funds and will file its FY22 results by the end of this month.
People aware of the development said talks are on to sell BYJU'S two assets and it plans to tap private equity investors for the sale.
How did it acquire Epic and Great Learning?
BYJU'S acquired US-based reading platform Epic for $500 million and Great Learning, a professional learning platform, for about $600 million.
These developments have come after the EdTech firm formed an Advisory Council. Former State Bank of India (SBI) chairman Rajnish Kumar and former Chief Financial Officer (CFO) of Infosys TV Mohandas Pai joined the council, which is playing a significant role in advising and mentoring BYJU'S Board and its CEO, Byju Raveendran.
Earlier, The New Indian Express reported that the EdTech firm and lenders have decided to postpone the disagreement in US courts before October 6. Earlier in June, the company had filed a complaint in the New York Supreme Court to challenge the acceleration of the $1.2 billion TLB (the firm secured this loan in November 2021). It had skipped paying $40 million interest.
Last month, it restructured its businesses and verticals including the consolidation of four verticals into two key verticals - K-10 and Exam Prep.
Also, the EdTech firm BYJU'S, which acquired tuition chain Aakash Educational Services, for about $950 million in April 2021, will launch the initial public offering (IPO) of Aakash in mid-2024. The board of the EdTech company had granted its official sanction for this IPO.
"The upcoming IPO will provide a significant capital infusion to bolster Aakash's infrastructure, broaden its reach, and extend high-quality test-prep education to a larger number of students across the nation,-" the company had said.
