NASDAQ-listed
MakeMyTrip Ltd and
ibibo Group, which is co-owned by South African technology group Naspers Ltd and China’s Tencent, have announced the merger of their business in the biggest consolidation move in the online travel agency (OTA) business in India. The transaction is expected to close by the end of December 2016.
As part of the deal, Founder Deep Kalra will remain Group CEO and Executive Chairman of MakeMyTrip 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 organization.
The merger will strengthen MakeMyTrip’s position in the OTA business and pump up competition against portals like Yatra.com, which is in the process of getting listed in NASDAQ.
The combined entity 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.
Naspers and Tencent that own 91% and 9%, respectively, of ibibo, will together own 40% stake in the combined entity and will become its top shareholder.
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