Naspers' Indian travel business, ibibo Group, has entered into a transaction with Nasdaq-listed MakeMyTrip, which will combine the two businesses under MMYT to create one of the largest travel groups in India.
Naspers and Tencent, 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 South Africa-based global Internet and entertainment group says the combination of ibibo and MMYT will bring together a bouquet of consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay. The companies expect the transaction to unlock value for customers, supply partners and shareholders, by combining the complementary strengths of each travel group.
"India is a key market for Naspers, and this deal reinforces our commitment to the country. Ibibo and MakeMyTrip have built leading companies through their innovative use of technology to create exceptional experiences for people travelling throughout India and, increasingly, beyond," says Naspers CEO Bob van Dijk.
Following the closing of the proposed transaction, founder Deep Kalra will remain group CEO and executive chairman of MakeMyTrip, and co-founder Rajesh Magow will remain CEO India of MakeMyTrip. Founder and CEO of ibibo Group Ashish Kashyap will join MakeMyTrip's executive team as a co-founder and president of the organisation.
"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," Naspers says in a statement.
The transaction is expected to close by the end of December, and is subject to approval by MMYT shareholders and regulatory approvals.
Earlier this week, Naspers announced it was selling its Polish online marketplace and price comparison businesses Allegro.pl and Ceneo.pl, for $3.253 billion (R46.6 billion).
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