Naspers sells its entire stake of MakeMyTrip to Chinese travel services provider Ctrip.
Ctrip is going to own around 49% of MakeMyTrip total voting rights.
MakeMyTrip plans to use deal with Ctrip to accelerate growth potential in travel and tourism between India and China.
South African Internet conglomerate Naspers done its second major exit from India. Previously after selling its stake of Flipkart to Walmart now, it is completely exiting MakeMyTrip Ltd. Naspers is going to sell its entire stake of MakeMyTrip to Chinese travel services provider Ctrip.com International Ltd. According to the deal, Ctrip will own around 49% of MakeMyTrip total voting rights. It will also invest shares of MakeMyTrip in a third-party investment entity, which will own around 4% of the Indian company’s total voting rights. Naspers will own 5.6% of Ctrip after the transaction.
According to Deep Kalra, chairman and group CEO of MakeMyTrip, “We will use this investment to benefit from the gigantic growth potential in travel and tourism between our two countries (India and China)”. The deal is going to be closed in the second half of 2019 once after attaining regulatory approvals.
In October 2016 Naspers and China’s Tencent, which owned 91% and 9% respectively in ibibo Group sold online travel company to MakeMyTrip in exchange for a 40% stake in the combined company. The deal was meant to assist MakeMyTrip to enhance access to fast-growing segments such as hotel booking and bus ticketing through ibibo Group’s brands goibibo and redBus.
Naspers apart from two major exits from India has also invested in Indian Unicorns including $540 million investment in Ed-tech startup Byju’s in December last year. In the same month, it led a $1 billion investment in food-tech unicorn Swiggy to mark one of the single-largest capital infusions into an Indian startup.
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