Yatra Online Picks Up Additional 45% Stake In ANN

Globe Travels Acquisition: Yatra To Add 350 Corporate Clients, INR 783 Cr To Annual GMV

SUMMARY

Yatra Online will be picking up an additional 45% stake in ANN, raising its shareholding from 50% to 99%

The company has acquired 33,12,400 equity shares of INR 10 each, representing 49% of the issued and paid-up equity share capital of the target company from the joint venture partner

With this acquisition, the company aims to increase its presence in the adventure tourism space by focusing on key areas

Online travel aggregator (OTA) Yatra Online has agreed to buyout its partner’s stake in the joint venture Adventure and Nature Network Private Limited (ANN), operating in the field of adventure tourism, in an all cash deal.

Yatra Online will be picking up an additional 45% stake in ANN, raising its shareholding from 50% to 99%.

With this, ANN will become a subsidiary of Yatra Online.

The company has acquired 33,12,400 equity shares of INR 10 each, representing 49% of the issued and paid-up equity share capital (on a fully diluted basis) of the target company from the joint venture partner. The cost of acquisition for the shares is INR 98 Lakh, as per filings.

Founded in 2012, ANN has a paid up equity share capital of INR 6 Cr, consisting of INR 6 Lakh equity shares of INR 10 each.

With this acquisition, the company aims to increase its presence in the adventure tourism space by focusing on key areas. It expects that acquiring the stake from the joint venture partner will enhance its activities by converting the JV entity into a subsidiary, bringing in valuable synergies.

The acquisition was formalised through a share purchase agreement (SPA) executed on June 19, 2024. With the completion of this transaction on the closing date specified in the SPA, Yatra Online Limited now holds a controlling interest in ANN.

As per a regulatory filing, this acquisition aligns with Yatra’s growth objectives and reinforces its commitment to expanding its footprint in the adventure tourism industry.

Gurugram-based Adventure and Nature Network Private Limited (ANN) is a private limited company engaged in providing services related to transport, travel, and tourism, and organises activities such as trekking, cycling, camping, and sports events.

Yatra reported a consolidated net loss of INR 4.5 Cr in the financial year 2023-24 (FY24), compared to a net profit of INR 7.6 Cr in the previous fiscal year. The loss was mainly due to a surge in expenditure outpacing sales.

Additionally, the OTA’s consolidated net profit declined 37% to INR 5.57 Cr in the fourth quarter (Q4) of FY24 from INR 8.96 Cr in the same period the previous year. Operating revenue increased by 11% to INR 422.3 Cr in FY24 from INR 380 Cr in FY23, but it dipped 10% year-on-year (YoY) to INR 107.7 Cr during January-March 2024.

Besides, last month, the company also rolled out an AI-based expense management solution to help international and domestic enterprises manage their business expenditures efficiently.

It is pertinent to note that Yatra got listed on the US stock exchange in 2016. The company saw a muted listing on the Indian bourses last year in September.