Online Travel firm MakeMyTrip Ltd
has agreed to buy Ibibo Group’s Travel Business in India for $720 Million in
stock, creating one of the largest travel companies in the country. The deal
will bring all brands of the Nasper and Tencent backed Ibibo Group such as Goibibo,
redBus, Ryde and Rightstay under MakeMyTrip. Together, MakeMyTrip and Ibibo
processed 34.1 Million transactions in 2015-16.
The transaction is expected to
unlock value for customers, supply partners and shareholders, by combining the
complementary strengths of each business. MakeMyTrip brings its strong brand,
robust mix of domestic and outbound hotels and packages business and strong
position in the air ticketing business. Ibibo Group, via its brand Goibibo and
redBus, comes with a strong presence in various fast growing travel segments
including hotels, bus bookings and air ticketing.
The combined entity is valued at
$1.8 Billion. Naspers and Tencent jointly held 91% and 9% stake in Ibibo
respectively. They will be issued new shares in MakeMyTrip and will become the
single largest shareholder in MakeMyTrip, owning a 40% stake and will continue
proportionate working capital once the deal is closed.
India is a key market for Naspers.
Ibibo and MakeMyTrip have built leading companies through their innovative use
of technology to create exceptional experiences for people traveling throughout
India and increasingly beyond. Morgan Stanley acted as the financial advisor to
MakeMyTrip. Goldman Sachs acted as financial advisor to Ibibo and Naspers while
Cravath, Swaine and Moore, Trilegal and BLC Roberts served as legal advisors.
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