Indian Market & Trends

Makemytrip Ibibo deal gets CCI clearance

DELHI: MakeMyTrips (MMT) is now in the clear to acquire rival Ibibo group in an equity deal that would create one of India’s largest online travel firm. Fair trade regulator Competition Commission of India (CCI) has approved online travel portal proposal for the same as per the latest update on the regulators website.

The deal was announced in October last year. South Africa’s Naspers and Chinas Tencent Holdings are to sell Ibibo Group to MakeMyTrip in exchange for an issuance of new shares by the latter.  The deal will bring together consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay. Together, they processed 34.1 mm transactions during FY 2016.

Post deal completion, MMT will own 100 per cent of the Ibibo Group. Naspers and Tencent will become largest shareholder in MMT owning a 40 per cent stake. They will contribute proportionate working capital as per announcements made in October 2016.

Additionally, prior to closing, a USD 180 million, 5-year convertible notes issued by MakeMyTrip to Ctrip.com International in January 2016, will also be converted into common equity. Ctrip will then have approximately 10 per cent stake in the combined entity.

MakeMyTrip Founder Deep Kalra will remain Group CEO and Executive Chairman of the company. Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip. Founder and CEO of ibibo Group, Ashish Kashyap will join MakeMyTrips executive team as a Co-founder and President of the organisation.

Musafir Namah Bureau

LEAVE A REPLY

Please enter your comment!
Please enter your name here