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.
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Here are 8 things you need to know about the deal:
- The merged entity will operate as MakeMyTrip.
- The combined valuation of both the companies is estimated to be around $1.2-1.8 billion.
- Ibibio will bring GoIbibo, RedBus, Ryde and Rightsay with MakeMyTrip all under one net.
- 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.
- Both the companies will have nearly 50 per cent share in online hotel booking space.
- Ashish Kashyap, who founded Ibibo in 2007, will join MakeMyTrip's executive team as a co-founder and president.
- Deep Karla will remain CEO and Executive Chairman or of MakeMyTrip.
- MakeMyTrip and Ibibo together will create price challenges for players like Yatra and Cleartrip.