Here are 8 takeaways from the MakeMyTrip and Ibibo merger

Ibibo, owned by a South African-based technology group Naspers Ltd and China's Tencent Holdings Ltd, are selling 100% of their company to MakeMyTrip in exchange for the issuance of new shares by MakeMyTrip.

By BT Online  
Wednesday, October 19, 2016

MakeMyTrip and Ibibo Group that announced their merger on Tuesday is all set to become a prominant player in the market with a large market share in airline, bus and hotel bookings.

Ibibo, owned by a South African-based technology group Naspers Ltd and China's Tencent Holdings Ltd, are selling 100% of their company to MakeMyTrip in exchange for the issuance of new shares by MakeMyTrip.

Following the deal, Naspers and Tencent will become the single-largest shareholder in the Nasdaq-listed MakeMyTrip, owning a 40 per cent stake.

Here are 8 things you need to know about the deal:

 

  1. The merged entity will operate as MakeMyTrip.
  2. The combined valuation of both the companies is estimated to be around $1.2-1.8 billion.
  3. Ibibio will bring GoIbibo, RedBus, Ryde and Rightsay with MakeMyTrip all under one net.
  4. MakeMyTrip is a strong contender in online airline ticketing and hotel booking space and will now have Ibibo's online bus booking space and other accomodation bookings like villas, guest houses, bungalows and apartments.
  5. Both the companies will have nearly 50 per cent share in online hotel booking space.
  6. Ashish Kashyap, who founded Ibibo in 2007, will join MakeMyTrip's executive team as a co-founder and president.
  7. Deep Karla will remain CEO and Executive Chairman or of MakeMyTrip.
  8. MakeMyTrip and Ibibo together will create price challenges for players like Yatra and Cleartrip.

 

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