by BYJU’S, the Indian edtech giant, has issued a legal notice to the founders of Aakash Educational Services, alleging that they are refusing to complete a share swap that was agreed as part of the sale of Aakash to BYJU’S in 2021.
The share swap was part of a $940 million cash and stock deal that saw BYJU acquire Aakash. Under the terms of the deal, the Aakash founders were to receive a portion of their payment in the form of shares in BYJU’S. However, the founders have so far refused to complete the share swap, citing concerns about tax liabilities.
BYJU’S has said that the share swap is a “crucial part” of the acquisition agreement and that the Aakash founders’ refusal to complete it is a breach of contract. The company has demanded that the founders complete the share swap within 15 days of the notice, or face legal action.
The Aakash founders have not yet responded to the legal notice. However, they have previously said that they are willing to complete the share swap, but only if they are given assurances that they will not be subject to any tax liabilities.
The share swap dispute is the latest in a series of challenges that BYJU’S has faced since the Aakash acquisition. In recent months, the company has been criticized for its high valuation and its aggressive growth strategy. It has also faced allegations of plagiarism and of misleading investors.
The share swap dispute is a further setback for BYJU’S and could have implications for the company’s future growth. If the dispute is not resolved, it could lead to further delays in the integration of Aakash into BYJU’S and could damage the company’s reputation.
Here are some of the key takeaways from the story:
- BYJU’S has issued a legal notice to the Aakash founders over a share transfer dispute.
- The share swap was part of a $940 million cash and stock deal that saw BYJU’S acquire Aakash.
- The Aakash founders have so far refused to complete the share swap, citing concerns about tax liabilities.
- BYJU’S has demanded that the founders complete the share swap within 15 days of the notice, or face legal action.
- The Aakash founders have not yet responded to the legal notice.
- The share swap dispute is the latest in a series of challenges that BYJU’S has faced since the Aakash acquisition.
- The dispute could have implications for BYJU’S’ future growth.
