MakeMyTrip recently announced that it will be selling it’s shares to investors that would generate a gross amount of $165 million to the company.
Transaction With Ctrip & MIH
The proceedings of the transactions with MIH and Ctrip are expected to conclude by tomorrow and generate a total gross amount of $330 million.
Reason Of Transaction
Transaction will be navigated towards investment in business expansion, technology & product development, strategic investments, marketing and promotion, and working capitals other than serving to general corporate.
What Is Included In Agreement
As per this share purchase agreements, the company will provide an aggregate of 4583334 ordinary shares to investors at a rate of $36 per share. In association of this placement, Morgan Stanley India Company Private Limited is playing the role of sole placement agency.
Shares Of Ctrip And MIH
MakeMyTrip is also looking to join the share purchase agreements with Ctrip.com International Ltd along with this placement. Ctrip and MIH Internet SEA Pvt. Ltd. will be issued ordinary shares by the company in return of issuance of Class B convertible shares to MIH. This transaction is expected to generate additional $165 million to the company.
According to the share purchase agreement with Ctrip, MakeMyTrip will become able to grant 916666 ordinary shares to Ctrip at $36 per share as well as it permits 3666667 Class B shares to MIH at $36 per share. Moreover, the class B share permitted to MIH will be interchangeable in to ordinary shares on One-to-one basis.
Merging Of Goibibo And Makemytrip
In January of last year, Ctrip had put $180 million in MakeMyTrip using convertible bonds whereas in the month of October, Goibibo merged in to MakeMyTrip. Well the actual value of the deal was not disclosed still it is estimated that Goibibo was evaluated at $500-$600 million while the value of the merged entity is $1.8 billion.
The MakeMyTrip and Goibibo merger was supposedly the biggest one in online travels platform. The merger has been fruitful for both the companies in terms of fortunes.