India's Byju's looks to raise $1 bln with sale of Great Learning, Epic (updated)

Hong Kong Economic Times Holdings

11/09/2023 12:52

(Adds detail of deals in paragraph 3, 6 and 9, adds context of
previous troubles)
    By M. Sriram and Aditya Kalra
       MUMBAI/NEW DELHI, Sept 11 (Reuters) - Indian education
giant Byju's is looking to sell two companies it acquired in
2021 - Great Learning and Epic - to raise up to $1 billion in an
effort to streamline its businesses and repay lenders, two
sources with direct knowledge of the matter told Reuters.
    Byju's, valued at $22 billion last year, has experienced a
series of business crises, including its auditor and board
members quitting, and has been negotiating the repayment of a
$1.2 billion loan in the last few months.
    Backed by investors such as General Atlantic, Prosus and
Silver Lake, Byju's could also sell more assets in the future to
raise cash, both sources said.
    A spokesperson for Byju's did not immediately respond to a
request for comment.
    While Epic is a U.S-based reading platform which Byju's
acquired for $500 million, Great Learning is an Indian company
providing upskilling courses and degrees, which Byju's acquired
for $600 million.
    Byju's is expecting up to a billion dollars in total- about
$400-550 million for Epic and $350-450 million for Great
Learning, part of a "business turnaround strategy" the second
source with direct knowledge said. 
    Indian business daily Economic Times reported the plan
earlier on Monday.
    Byju's plans to sell the two companies are part of a
"strategy review" to divest from other business lines and focus
on its original area of K-12 (kindergarten through secondary)
education area, the source said.
    Byju's has received term sheets to sell Epic, the second
source said, although the source did not specify from whom. In
addition to other education companies, Byju's also plans to tap
private equity investors to sell the two companies, the first
source said. 
    Both sources did not want to be named due to the private
nature of the discussions.
    In June, three of Byju's investor board members quit the
company's board without explanation, leaving only company
executives on the board. The same day, its auditor Deloitte quit
mid-way through its audit, saying there was a "significant
impact" on its ability to perform the audit according to
necessary standards after "long-delayed" financial statements by
the company.
    Three senior executives, including the company's business
head quit their jobs last month.
        
  

 (Reporting by M. Sriram and Aditya Kalra; editing by David
Evans)
 ((Sriram.Mani@thomsonreuters.com;; Reuters Messaging: Twitter:
@followthemani))