Byju’s is hoping to earn between $400-$500 million from the sale of Epic, which is a US-based kids’ learning company
New Delhi, NFAPost: Education technology firm Byju’s has put two of its key companies, Epic and Great Learning, on sale to raise $800 million to $1 billion in cash, The Economic Times (ET) has reported.
The troubled edtech is planning to settle a $1.2 billion Term loan B and the sale is part of its plan to honour its financial commitments, the report cited people aware of the matter as saying.
The edtech company has been working with bankers to sell the two assets to strategic investors. ET said that the company has contacted some interested buyers. Other than this, Byju’s is also trying to arrange fresh equity capital, the people cited above told the newspaper.
Breakdown of the deal
Byju’s is hoping to earn between $400-$500 million from the sale of Epic, which is a US-based kids’ learning company. Byju’s had acquired Epic in a $500 million cash and stock deal in May last year, the report said.
Furthermore, higher education and upskilling company Great Learning is also up for sale and Byju’s expect around $500-$600 million from its sale, people aware of the subject were cited in the report as saying.
A person in the know was quoted in the ET report as saying, “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.”
Moreover, Byju’s is also engaging with sovereign funds to raise new capital.
If successful, the sale would give Byju’s the much-needed funds to manage its financial turmoil and provide it with some room to breathe.
