Byju’s puts Epic, Great Learning on sale for $800 million to $1 billion

Edtech firm Byju’s has put two of its key belongings, Epic and Great Learning, on the block to generate $800 million-$1 billion in money. The troubled firm has proposed to clear a $1.2 billion Term mortgage B to its lenders, and the sale is a part of its plans to fulfill this dedication, amongst others, folks within the know stated.

Byju’s has been working with bankers to promote the 2 belongings to strategic buyers and our sources advised us it has garnered some curiosity. Simultaneously, it’s in talks to boost recent fairness capital, the folks added.

Byju’s is anticipating anyplace between $400-$500 million from the sale of Epic, a US-based youngsters’ studying firm it had acquired in a $500 million cash-and-stock deal in May final yr. Separately, larger training and upskilling agency Great Learning is on the block, and Byju’s expects round $500-$600 million for the corporate, the folks conscious of those discussions stated.

“A proposal has been made to clear the whole TLB loan. There is about $500 million remaining from the TLB itself; the sale of assets would fetch additional capital by this month to clear the dues,” one of many folks conscious of the talks stated. He added that Byju’s is concurrently participating with sovereign funds for a brand new fundraise.

A spokesperson for Byju’s didn’t instantly reply to ET’s question.

If the gross sales undergo, they might give Byju’s some a lot wanted ammunition to handle its financials, and in addition give it some elbow room throughout negotiations with the promoters of check preparation firm Aakash Institute, in addition to creditor-Davidson Kempner.

On September 2, ET had reported that Byju’s has fashioned a panel to nominate a brand new chief government officer and chief monetary officer for Aakash Institute, as incumbents Abhishek Maheshwari and Vipan Joshi are transferring on.Aakash, which Byju’s had acquired for $950 million in 2021, is within the midst of a shareholder tussle. Byju’s has been in talks with the promoters—the Chaudhry household and funding fund Blackstone—to finish the share swap for the deal introduced two years in the past. Sources advised ET that the fairness swap a part of the Byju’s-Aakash deal is pending.

ET had reported on August 4 that Aakash’s board was being revamped whilst talks had been on with New York-based funding fund Davidson Kempner (DK) over the Rs 2,000-crore credit score line it had prolonged to Byju’s this yr.

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