Emergency arbitrator instructs Think and Learn, parent company of Byju’s, not to sell around 6% stake in its subsidiary Aakash Education Services Limited, due to failure to repay approximately Rs 350 crore borrowed from MEMG Family Office led by billionaire Dr. Ranjan Pai. Arbitration proceedings initiated by MEMG in March aimed to safeguard its rights based on Byju’s commitment at the time of borrowing.
A legal representative, speaking anonymously, revealed that the emergency arbitrator, appointed under Singapore International Arbitration Centre rules, issued directives on April 4 prohibiting Byju’s from transferring or encumbering the aforementioned stake in Aakash.
Despite attempts to reach Byju’s and MEMG for comment, no response was received. However, a source from Byju’s suggested that the arbitration order maintains the current situation and does not adversely affect the value of AESL or Think and Learn.
Acknowledging Byju’s financial challenges post-pandemic, the source characterized MEMG’s arbitration process as procedural, indicating ongoing discussions to resolve the matter in the best interest of both companies.
