New Delhi: Online travel firm MakeMyTrip will acquire rival ibibo in an equity deal that will create one of the leading travel groups in India.
South Africa’s Naspers and China’s Tencent Holdings are selling ibibo group to MakeMyTrip in exchange for an issuance of new shares by MakeMyTrip, the company said in a statement.
Upon closing of the transaction, MakeMyTrip will own 100 per cent of ibibo Group. Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40 per cent stake and will contribute proportionate working capital upon closing, it added.
Additionally, prior to closing, a $ 180 million, 5-year convertible notes issued by MakeMyTrip to Ctrip.Com International Ltd in January 2016 will also be converted into common equity, resulting in Ctrip having an approximately 10 per cent stake in the combined entity, it added.
The transaction is expected to close by the end of December 2016 and is subject to approval. Commenting on the possible buyout, MakeMyTrip Founder Deep Kalra said: “We expect this deal to create an even more scalable business with the expertise to transform the booking experience for Indian travellers. I am delighted to be leading such a strong team in our next chapter of our high-growth in this dynamic industry..” The combination will bring together a bouquet of travel brands.