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 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.
MakeMyTrip co-founder and co-CEO Rajesh Magow said the deal would take his company’s partnership with Ctrip “to the next level.”
The deal comes as Naspers prepares to list its international business, which includes advertising giant OLX and stakes in numerous internet companies, in the Netherlands.
Ctrip’s past deals have included the $1.74 billion acquisition of Scotland-based Skyscanner and the undisclosed purchase of U.S.-based travel discovery app Trip.com. It has also invested $463 million in China Eastern Airlines and swapped shares with Chinese rival Qunar.
Today’s share swap deal is forecast to close in this current Q2, according to an announcement from Ctrip.
Chinese investors have developed an affinity for India’s online travel agencies (OTA).
On April 26, China’s CTrip bought a 42.5% stake in India’s largest online travel firm MakeMyTrip (MMT) from South Africa’s Naspers in a share-swap deal. Along with an earlier investment, CTrip now owns about half of MMT’s shares.
This is among the biggest moves by a Chinese investor in India’s OTA space and comes at a time when India’s online travel segment is poised to touch $48 billion (Rs3.3 lakh crore) by 2020, compared with less than $10 billion in 2014.
I like this website because so much useful stuff on here :D. Shanon Karlik Baryram
A big thank you for your post. Really looking forward to read more. Great. Nanni Giraud Cuthbert
Good answers in return of this query with solid arguments and explaining all concerning that. Selestina Humphrey Reamonn
I am sure this article has touched all the internet viewers, its really really pleasant paragraph on building up new website. Nicolette Fransisco Vaenfila
His gams were jiggling on my shoulders. Her hair was brief but mushy it shaped her face so well. Rhona Richart Matthews
Piece of writing writing is also a excitement, if you be acquainted with then you can write otherwise it is complicated to write. Amandy Sayers Herwig
You completed various fine points there. I did a search on the theme and found a good number of folks will go along with with your blog. Mareah Rossie Elfie
I was looking at some of your articles on this website and I conceive this web site is really instructive! Keep on putting up. Diann Frank Cathrine
This is a to a great extent signal post. Thanks instead of posting this. Maurita Nehemiah Montagna
Valuable info. Lucky me I discovered your web site by chance, and I’m stunned why this accident didn’t came about earlier! I bookmarked it. Edyth Stuart Nyberg
Absolutely indited subject matter, thanks for information . Shauna Otes Britta
Really wonderful information can be found on web site. “Life without a friend is death without a witness.” by Eugene Benge. Albertine Barr Lissa
You are my intake , I possess few blogs and occasionally run out from to post . Hali Farleigh Settera
Good post. I will be experiencing a few of these issues as well.. Valentina Town Bowie
Hi there, I want to subscribe for this web site to get hottest updates, therefore where can i do it please assist. Elfie Alick Gabriell
Enjoyed every bit of your blog. Much thanks again. Cool. Danni Ruy Charline
I am wordless when I have to comment on your blog. Your writing and thought is beyond any word of praise. Dita Jonathon Petronia
I really like your writing style, excellent information, regards for putting up : D. Emilie Cecil Lucier
Thank you ever so for you blog post. Really looking forward to read more. Really Great. Katerina Bartram Isadore
Wow, this post is nice, my younger sister is analyzing these kinds of things, so I am going to convey her. Eleanora Mal Mathis
Wonderful work! This is the type of info that should be shared across the internet. Cheslie Thornie Alisa