With the signing of a new deal, Naspers will exchange its entire shareholding in MakeMyTrip for newly issued shares of Ctrip, while Ctrip will acquire Naspers’ current shareholding in the Indian OTA.
Concurrent with the share exchange, Ctrip will invest certain ordinary shares and class B shares of MakeMyTrip in a third-party investment entity.
Following the transaction, Naspers will own 5.6 per cent of Ctrip’s outstanding ordinary shares, and Ctrip and the third-party investment entity will own ordinary shares and class B shares of MakeMyTrip representing approximately 49.0 per cent and four per cent of MakeMyTrip’s total voting rights, respectively.
Deep Kalra, chairman and Group CEO of MakeMyTrip, said: “We have worked with Ctrip in the past years and are excited to take this partnership to the next level. We will leverage this investment to benefit from the tremendous growth potential in travel and tourism between our two countries (China and India).”
“We are also delighted to welcome Naspers to become our shareholder. Ctrip will continue to work hard to create greater value for our customers, our partners and all shareholders,” Jane Sun, CEO of Ctrip commented.
The transaction is expected to close as soon as practicable in the second half of 2019 and is subject to customary closing conditions, including the requisite regulatory approvals.