A $600 Million BYJUs deal unwound: Great Learning finds its way back to founders.

Mint featured our partner Archana Balasubramanian who commented: “In a standard Indian share purchase agreement (SPA), payment and share transfer happen together. Nothing, however, stops the parties from transferring shareholding on deferred consideration. But, if the buyer defaults on a deferred payout, robust SPAs will typically carry a “wind-back” clause that spells out what happens if the money does not arrive. In an unlisted Indian company, the basic requirements on the seller side are board approval and a shareholder resolution for the share transfer back. “Given the discounting in valuation of Byju and its subsidiaries as a whole, it would have be come easier and more economical for the ex-founder and current CEO to buy out the share”, in its story titled A $600 Million BYJUs deal unwound: Great Learning finds its way back to founders.

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