June 24th 2024.
In a surprising move, Dutch investment firm Prosus has announced that it is writing off a staggering $578 million that it had previously invested in the edtech company Byju's. This unexpected decision was made public by the company on Monday, sending shockwaves through the financial world.
It all started in September of 2022 when Prosus lost a significant amount of influence over Think and Learn, the parent company of Byju's. This resulted in their stake in the edtech giant dropping to a mere 9.6%. As a result, Prosus had to account for this as a loss in their group accounts, valuing their remaining investment in Byju's at $578 million.
This revelation came to light through Prosus' annual report for the fiscal year that ended in 2024. In the report, the company stated that they had to account for their investment in Byju's at fair value through other comprehensive income, due to the loss of their significant influence over the company.
Interestingly, Prosus is not the only investor to have taken legal action against Byju's management and their recent $200 million rights issue. Along with three other investors, Prosus has approached the National Company Law Tribunal (NCLT) to address their concerns. This development has added yet another twist to the already complex relationship between Prosus and Byju's.
Overall, this news has caused quite a stir in the financial world and has left many wondering about the future of Byju's and its investors. It remains to be seen how this situation will unfold and what the implications will be for both Prosus and Byju's. Only time will tell.
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