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Indian OTAs MakeMyTrip and ibibo Group (owned by Naspers Limited), have agreed to pursue a transaction that will combine the two businesses under MMYT. The combination will bring together a bouquet of leading consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay. Naspers and Tencent, through their jointly owned holding company (91% owned by Naspers and 9% owned by Tencent), are selling ibibo Group to MakeMyTrip in exchange for a 40% stake in MakeMyTrip. MakeMyTrip will own 100% of ibibo Group after the deal. Naspers and Tencent will become the single largest shareholder in MakeMyTrip. Additionally, the USD180 million, 5-year convertible notes issued by MakeMyTrip to Ctrip 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. |
