Naspers, Africa’s largest Internet company has announced that it agreed to the merger of Ibibo Group and MakeMyTrip Limited
According to statement released by Naspers, the merger will see the two companies use a single name and identity under MMYT to become one of the largest travel groups in India.
MakeMyTrip Limited is listed on the Nasdaq Stock Exchange
Explaining the merger arrangement, Naspers said ‘Naspers and Tencent (700: Hong Kong), through their jointly-owned holding company (91% owned by Naspers and 9% owned by Tencent), are selling 100% of ibibo to MMYT in exchange for the issuance of new shares by MMYT. Naspers and Tencent will become the single largest shareholder in MakeMyTrip, owning a 40% stake, and will contribute proportionate working capital upon closing’.
The combination of ibibo and MMYT will bring together a bouquet of leading consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay. The Transaction is expected to unlock value for customers, supply partners and shareholders, by combining the complementary strengths of each travel group. MMYT brings its strong brand, robust mix of domestic and outbound hotels and packages business, and the strong position of its air ticketing business. ibibo, via its goibibo and redBus brands, comes with strong presence in the fast-growing hotel market, bus ticket-booking segment and a fast-growing air ticketing business.
The Transaction is expected to close by the end of December 2016, and is subject to approval by MMYT shareholders, and regulatory approvals.
Last week Naspers announced that it has sold off 100% of its stake in Allegro to funds advised by private equity firms Cinven, Permira and Mid Europa. It is expected that Naspers will be selling off non-performing companies and merging with stronger ones in different markets.
Other companies owned by Naspers are OLX, Avito, letgo, Allegro, eMAG, Flipkart, PayU, MultiChoice, ShowMax, Movile, SimilarWeb and Media24.