In the biggest consolidation move in the Online Travel Agency (OTA), NASDAQ listed MakeMyTrip Ltd will acquire rival ibibo in an equity deal, which according to a note by Morgan Stanley, is worth $1.8 billion.
South Africa’s Naspers and China’s Tencent Holdings which own 91% and 9% respectively in ibibo Group, are selling ibibo Group to MakeMyTrip in exchange for a 40% stake in the combined company, to become the single largest shareholders in MakeMyTrip.
Upon closing of the transaction, MakeMyTrip will own 100 per cent of the ibibo Group.
ibibo group’s brands include goibibo, country’s top bus ticketing venture redBus, Ryde and Rightstay.
“The combination will bring together a bouquet of leading consumer travel brands, including MakeMyTrip, goibibo, redBus, Ryde and Rightstay, which together processed 34.1 million transactions during FY2016,” MakeMyTrip said.
After the closing of the transaction by December 2016, MakeMyTrip 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. Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip’s executive team as a Co-founder and President of the organisation.