Dhaka: Ctrip International, the Chinese travel company, will become the largest stakeholder in home-grown online travel operator MakeMyTrip (MMT) since Naspers, the South African tech and internet conglomerate, is going to sell its stake in the Gurgaon-based, Nasdaq-listed company in a share swap deal.
Most of the 42.5pc that Naspers holds will be exchanged for a 5.6pc stake in Ctrip, which will hold 49pc of MakeMyTrip once the deal is completed, up from 10pc now, said a source. A separate, unaffiliated fund will get a 4pc stake in MakeMyTrip from the remaining Naspers holding, he added.
“We believe this is a great deal for Naspers and its shareholders,” Naspers said. “The resulting stake in Ctrip will give Naspers exposure to one of the global leaders in the online travel industry, with deep industry expertise and technology.”
Naspers became an investor in the Indian site in late 2016 following the acquisition of Ibibo Group by MakeMyTrip. Ctrip invested in MakeMyTrip in January 2016.
The Chinese travel giant, which has a market capitalisation of USD23.5 billion, had first backed MakeMyTrip in January 2016 through an investment of USD180 million in convertible bonds.
Cape Town-based Naspers said that the share swap will occur at USD32.30 per share, reflecting a 25pc premium to the most recent closing price and a 19pc premium to MakeMyTrip’s current 30-day volume weighted average price. MIH Internet SEA, the Naspers owned investment entity in MakeMyTrip, is expected to earn about USD1.4 billion, which will be settled in Ctrip shares at USD43.01 apiece.
The deal, which is subject to approvals, is expected to close in the second half of 2019.
MakeMyTrip rose to USD26.48 in early trade on April 26 on the Nasdaq.
“We are grateful for the unstinting support Naspers has provided us over the last couple of years,” said Deep Kalra, Chairman and Group Chief Executive, MakeMyTrip. “We have worked with Ctrip in the past years and are excited to take this partnership to the next level.”