Blackstone withdraws NCLT petition against Aakash over AoA amendments
As a minority investor in AESL, Blackstone had filed the petition through its entity, Singapore VII Topco I Pte. Ltd., but did not disclose any reason for retracting the case.
Private equity firm Blackstone has withdrawn its petition in the NCLT against Aakash Educational Services Limited (AESL), which contested the test-prep institute’s decision to amend its Articles of Association (AoA).
The National Company Law Tribunal (NCLT) is said to have approved Blackstone’s withdrawal.
As a minority investor in AESL, Blackstone had filed the petition through its entity, Singapore VII Topco I Pte. Ltd., but did not disclose any reason for retracting the case.
Last November, Blackstone had argued that despite holding a 6.97% equity stake in AESL, they were “being deprived of all their rights”.
Back then, the NCLT had directed AESL not to enforce any resolutions passed during the November 20 Extraordinary General Meeting regarding the removal of Part-B from its AoA.
The AoA is a set of rules that governs a company’s management and operations, and it defines the rights and responsibilities of shareholders.
On Monday, Glas Trust, representing BYJU’S US-based lenders, urged the NCLT bench to halt the PE firm’s withdrawal, arguing it affected Think & Learn’s (the parent company of BYJU’S) rights as a minority shareholder in AESL. However, the bench declined the request.
In 2021, BYJU’S acquired AESL for about $950 million, paying nearly 70% in cash, while the rest was to be adjusted against the equity of its parent company, Think & Learn Private Limited.
Ranjan Pai, holding a 40% stake, is the largest shareholder in the Delhi-based test preparation company. In July, the Competition Commission of India approved the allocation of an equity stake in AESL to Pai’s Manipal Group.
