MakeMyTrip take over ibibo, to create largest travel group in country
MakeMyTrip take over ibibo, to create largest travel group in country:- The famous online travel firm MakeMyTrip will be acquiring rival ibibo in an equity deal that will further create one of the leading travel groups in India.
South Africa’s Naspers and China’s Tencent Holdings are selling their ibibo Group to MakeMyTrip in exchange for an issuance of some new shares by MakeMyTrip, the company said in a statement.
MakeMyTrip went public on NASDAQ in the year 2010.
Upon closing of the transaction, MakeMyTrip will now own 100 percent of ibibo Group. Naspers and Tencent will further become the single largest shareholder in MakeMyTrip, while owning a 40 percent stake and will also contribute proportionate working capital upon closing, it added.
Additionally, prior to closing, a $180 million, 5-year convertible notes has been issued by MakeMyTrip to Ctrip.com International Ltd in January 2016 will also be converted into common equity, resulting in the Ctrip having an approximately 10 percent stake in the combined entity, it has added.
The transaction is expected to close by the end of December 2016 and is subject to approval by MakeMyTrip shareholders and regulatory approvals.
MakeMyTrip expects to create a more scalable business
While, commenting on the development, MakeMyTrip founder Deep Kalra said: “We further expect this deal to create an even more scalable business with the expertise to transform the booking experience for our Indian travellers. I am delighted to be leading such a strong team in our next chapter of high-growth in this dynamic industry.” The combination will bring together be a bouquet of consumer travel brands, which includes MakeMyTrip, redBus, goibibo, Ryde and Rightstay, which together processed 34.1 mm transactions during the FY2016. MakeMyTrip said in a statement.
Following the closing of the proposed transaction, MakeMyTrip founder Deep Kalra will further remain Group CEO and Executive Chairman of the company and the co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip, it added. Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a co-founder and President of the organisation, MakeMyTrip said.
“Deep, Rajesh and I saw a great opportunity to join forces, and I am excited that this merger enables all of us to continue a great journey together as the leading travel group in India,” ibibo Group CEO Ashish Kashyap said.