Online travel portal makemytrip to buy its rival ibibo group

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Online travel portal makemytrip to buy its rival ibibo groupOnline travel portal makemytrip to buy its rival ibibo group

Posted By: indianews October 19, 2016

Online travel firm MakeMyTrip will acquire rival ibibo in an equity deal. Ibibo is owned by South Africa-based technology group Naspers Ltd and China’s Tencent Holdings Ltd. They are selling ibibo in exchange for an issuance of new shares by MakeMyTrip.

By merger MakeMyTrip will own 100 per cent of ibibo Group, Naspers Ltd and China’s Tencent Holdings Ltd. will become the single largest shareholder in MakeMyTrip, owning a 40 per cent stake.

Shares of the loss-making Makemytrip(mmt), which is listed on Nasdaq, soared nearly 46% to $29.75 at 9 pm.
“Today’s announcement is a significant step forward for the rapidly growing travel industry in India,” MMT Group CEO Deep Kalra said in a statement.
Ibibo’s brands include goibibo for hotels and air ticketing and redBus, the bus booking portal. Makemytrip controls an estimated 30% share of the market for online booking of hotels and flights. Ibibo’s controls about one-fifth of the hotel booking.
MMT Founder Deep Kalra will remain Group CEO and Executive Chairman of the company and Co-founder Rajesh Magow will continue to remain CEO India of MakeMyTrip, it added.

Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a Co-founder and President of the organisation, MMT said.

“Deep, Rajesh and I saw a great opportunity to join forces, and I am excited that this merger enables all of us to continue a great journey together as the leading travel group in India,” ibibo Group CEO Ashish Kashyap said.

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