Category: booking holdings

April 26, 2019 Off

China’s Ctrip now owns half of India’s MakeMyTrip following share swap with Naspers

By Jill T Frey

China’s Ctrip, the world’s second largest online travel company, is doubling down on India after it announced a deal to increase its ownership of travel company MakeMyTrip to nearly half.

Ctrip will boost its ownership of MakeMyTrip, which is listed on the Nasdaq as Ctrip, to 49 percent through an exchange deal that sees Naspers, the South African internet giant and early backer of Tencent, swap its shares for 5.6 percent of Ctrip. Ctrip said the investment leaves it with four percent of MakeMyTrip’s voting power.

On paper, each stake is worth around $1.3 billion. MakeMyTrip has a current market cap of $2.69 billion while Ctrip’s current share price gives it an overall valuation of $23.5 billion. In the industry, only Booking Holdings is valued higher with a current market cap of $84 billion.

There’s a long history between the three companies. Ctrip and Naspers invested $330 million into MakeMyTrip … Read the rest