| 2016-10-18 09:47:23|
MMYT, TCEHY… 09:47 10/18 10/18/16
MakeMyTrip, ibibo Group to consolidate Indian travel businesses
MakeMyTrip Limited (MMYT) and ibibo Group, owned by global technology group Naspers, have agreed to pursue a transaction that will combine the two businesses under MMYT, creating one of the leading travel groups in India that provides a one-stop shop for all Indian travellers and serves as a critical partner for travel industry suppliers. Following the closing of the proposed transaction, Founder Deep Kalra will remain Group CEO and Executive Chairman of MakeMyTrip and Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip. Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip's executive team as a Co-founder and President of the organization. Naspers and Tencent (TCEHY), through their jointly owned holding company, are selling ibibo Group to MakeMyTrip in exchange for an issuance of new shares by MakeMyTrip. Upon closing of the transaction, MakeMyTrip will own 100% of ibibo Group. Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40% stake, and will contribute proportionate working capital upon closing. Additionally, prior to closing , the $180M, 5-year convertible notes issued by MakeMyTrip Limited to Ctrip.com International, Ltd. (CTRP) in January 2016 will also be converted into common equity, resulting in Ctrip having an approximately 10% stake in the combined entity. The transaction is expected to close by the end of December 2016 and is subject to approval by MakeMyTrip shareholders and regulatory approvals.