Ctrip, one of the largest online travel agencies and one based out of China, is focusing more on India after its announcement of a deal that would up its ownership of MakeMyTrip, an Indian-based travel company, bringing the ownership up to almost 50%.
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 two years ago, a move that saw Naspers deepen its involvement after its portfolio company Ibibo merged with MakeMyTrip in January 2017. Prior to that, Ctrip invested $180 million into the India company in January 2016.
“Over the past years we have witnessed the great achievements of MakeMyTrip, and we are confident that MakeMyTrip will extend its success in the future,” read a statement from James Liang, Co-Founder and Executive Chairman of Ctrip.
“We are also delighted to welcome Naspers to become our shareholder. Ctrip will continue to work hard to create greater value to our customers, our partners and all shareholders,” added Ctrip CEO Jane Sun.
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