Private equity firm Blackstone-backed Singapore Topco has withdrawn its legal petition against Aakash Educational Services from the National Company Law Tribunal (NCLT) regarding proposed amendments to Aakash’s Articles of Association (AoA).
Following this move, it potentially allows Aakash to amend its AOA, restructure the company, fundraise, which was earlier opposed by the lender.
Blackstone-backed Singapore Topco holds around 6.97 percent stake in Aakash, had alleged that the amenldments to AOA was aimed to enhance the rights of Manipal Education, which owns 40 per cent of Aakash, while diluting the minority shareholders rights.
Next move
This development clears the path for Byju’s to proceed with the AoA amendments, potentially enabling the monetisation of its most valuable subsidiary as it navigates a $1.2 billion debt crisis.
Both Singapore Topco and US-based Glas Trust had filed individual petitions on the matter, with the former securing an NCLT stay on Aakash’s AoA amendments in November 2024. Lenders feared that Byju’s could tap into Aakash’s cash reserves or assets to address its debt obligations, intensifying the dispute. They argued that the proposed changes would erode minority shareholder rights and reduce Byju’s hold over its key subsidiary.
The withdrawal of Blackstone’s petition suggests that the Singapore Topco and Aakash may have reached an out-of-court settlement or are pursuing alternative dispute resolution mechanisms.
Byju’s had acquired Aakash in 2021 for $940 million, offering 70 per cent cash and 30 per cent equity to its founders, the Chaudhry family, and Blackstone. However, the merger fell apart in 2023 after the Chaudhry family refused to complete a share-swap deal, citing governance concerns. In January 2024, the Manipal Group purchased 40 percent stake in Aakash, becoming its largest shareholder.