MakeMyTrip to acquire ibibo Group

October 18, 2016 20:52

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 USD 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 by MakeMyTrip shareholders and regulatory approvals.

The combination will bring together a bouquet of consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay, which together processed 34.1 mm transactions during FY 2016, MakeMyTrip said in a statement. "

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