Online travel company, MakeMyTrip, has announced that China’s Ctrip.com International, Ltd., a leading travel service provider has invested about $180 Mn in MakeMyTrip through convertible bonds.
In addition, MakeMyTrip has granted Ctrip permission to acquire MakeMyTrip shares in the open market, so that combined with shares convertible under the convertible bonds, Ctrip may beneficially own up to 26.6% of MakeMyTrip’s outstanding shares. As per the terms of the deal, Ctrip will acquire the right to appoint a director to the MakeMyTrip board of directors.
The company will focus on further strengthening its leading market share in the Indian online travel market by offering customers the best mobile booking experience across its full service travel products platform.
Ctrip CEO and Co-Founder, James Liang commented, “Today’s announcement marks the beginning of the strategic relationship between Ctrip and MakeMyTrip. Through this transaction, Ctrip has now gained exposure to India’s fast growing online travel market.”
Morgan Stanley acted as the exclusive financial advisor to MakeMyTrip while Latham & Watkins LLP served as the legal advisor to MakeMyTrip on this transaction.
Founded in 2000 by Deep Kalra, MakeMyTrip is India’s leading online travel company created to empower Indian traveller with instant booking and comprehensive choice. Beginning its journey from US-India travel market, the company followed its success in the US by launching its India operations in 2005. Over time, the website has evolved into a full-service portal extending its offerings to online hotel-reservations, holiday-package bookings, and rail & bus ticket bookings.