Lessons in Expansion: Manipal Cracks the Code With CCI Approval for Aakash Stake

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India's antitrust regulator, the Competition Commission of India (CCI), has given clearance to the acquisition by Manipal Health Systems Private Limited and MEMG Family Office LLP, both of Pai family-controlled Manipal Group, of a significant stake in Aakash Educational Services Ltd (AESL).

The transaction involves:

Allotment of equity stake in AESL to Manipal Health Systems (Acquirer-1)
Right to apply for transfer of additional equity shares by MEMG Family Office (Acquirer-2)

AESL, being one of the leading test-prep and coaching institutes, offers classroom, online, distance, and hybrid mode of learning services to students from Class 8 to Class 12, including Olympiad, NTSE, and competitive entrance examination preparation.

This acquisition is a strategic foray by the Manipal Group into the education space, in addition to its domination of the healthcare and medical education fields. The acquisition also coincides with Byju's parent company, AESL, facing financial and legal challenges, such as insolvency proceedings and asset freezes.

Relevant Sources: Press Information Bureau, CCI Press Release, Rediff Money