China’s largest online travel agency now owns nearly half of India’s largest travel e-portal, MakeMyTrip, after a share-swap deal with South African internet giant Naspers Ltd.
The swap will see the stake of China’s Ctrip.com International Ltd in Nasdaq-listed MakeMyTrip Pvt. Ltd increase to around 49%, along with 4% of total voting rights, while Naspers will end up owning 5.6% of the Chinese company’s shares.
“We have worked with Ctrip in the past years and are excited to take this partnership to the next level," said Deep Kalra, chairman and group chief executive officer (CEO), MakeMyTrip. “We will leverage this investment to benefit from the tremendous growth potential in travel and tourism between our two countries."
MakeMyTrip’s market capitalization is around $2.69 billion, whereas that of Ctrip is at $23.5 billion.
Ctrip and Naspers invested $330 million in MakeMyTrip around two years ago. This was after its portfolio company, Ibibo Group, merged with MakeMyTrip in January 2017. In January 2016, Ctrip had invested $180 million in MakeMytrip.
“MakeMyTrip has transformed travel in India and beyond since 2000. The agreement we have announced today is a significant step in the growth ambitions of both MakeMyTrip and Ctrip, and we believe, continuing to support them as a shareholder will create additional value for Naspers and our shareholders," said Naspers CEO Bob van Dijk.
The development marks Naspers’ second exit in India, following its exit from online retailer Flipkart when the e-commerce platform was bought by Walmart Inc. last year.
Moreover, Naspers had announced in March that it will list its main internet businesses on the Amsterdam stock exchange. This will include its 31% stake in Chinese giant Tencent Holdings Ltd, Russian internet platform Mail.Ru and German food delivery business Delivery Hero SE.