Indian travel portal MakeMyTrip to acquire rival ibibo
All-stock deal expected to consolidate India's online travel booking market
India’s travel booking portal MakeMyTrip is buying rival ibibo Group in an all-stock deal that is expected to create a leading platform for booking hotel accommodation, flights and bus tickets.
According to a MakeMyTrip announcement, the consolidation will bring together leading consumer travel brands such as MakeMyTrip, goibibo, redBus, Ryde and Rightstay.
Founded in 2007, ibibo Group is jointly owned by South Africa based Naspers (91%) and Chinese company Tencent (9%). After the transaction the Nasdaq listed MakeMyTrip will own 100% of ibibo Group, while Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40% stake. The deal value was not announced.
The transaction is expected to be completed by the end of December 2016, subject to approval by MakeMyTrip shareholders and regulatory approval.
Before then, the US$180 million, 5-year convertible notes issued by MakeMyTrip Ltd to China based Ctrip.com International in January 2016 will be converted into common equity, resulting in Ctrip having an approximately 10% stake in the combined entity.
MakeMyTrip founder Deep Kalra will continue as Group CEO and executive chairman, while co-founder Rajesh Magow will continue as CEO India. The founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a president of the organization.