New Delhi: Nasdaq-listed online travel services firm MakeMy Trip Ltd has said it will acquire 29% stake in Delhi-based My Guest House Accommodations (MGH) for around $1 million this month, with option to fully takeover the firm over a period of eight years.
MGH is engaged in the business of aggregation, sales and distribution of hotel room with a focus on budget accommodations and serviced apartments.
The company said it has entered into agreements with My Guest House Accommodations (MGH) and its existing shareholders for share subscription and purchase on Tuesday.
Pursuant to these agreements, the company can acquire 100% of MGH’s ordinary shares based upon achievement of various business parameters spread over eight years.
“We expect the first closing to take place in November 2011, pursuant to which the company will acquire approximately 29% stake in MGH against a cash investment of approximately $1 million,” the statement said.
In August this year, MakeMy Trip had announced that it along with its largest share holder SAIF Partners, will pick up 76.6% stake for $18.5 million in Le Travenues Technology, which operates online travel search engine www.ixigo.com.
In May this year, MakeMy Trip had also acquired 79% equity stake in Singapore-based Luxury Tours & Travel Pte Ltd for $3 million.
The company’s revenues for the three months ended 30 September, 2011 increased 83.8% to $43.8 million as against $23.8 million in the same quarter last year.
“Our profit for the quarter ended 30 September, 2011 was $0.07 million as compared to a loss of $1.8 million in the quarter ended 30 September, 2010,” the statement said.