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Makemytrip acquires Ibibo in all stock deal
Two major online travel portals of India, MakeMyTrip and ibibo have decided to merge into one company in an all-stock deal that will result in creating a leading online travel portal in the country.
In a statement, the company said that South Africa's Naspers and China's Tencent Holdings are selling ibibo Group to MakeMyTrip in exchange for issuance of new shares by MakeMyTrip.

As part of the deal, MakeMyTrip will be owning 100 per cent of ibibo Group while as Naspers and Tencent will be owning a 40 percent stake in MakeMyTrip. They will also contribute proportionate working capital, thus making them the single largest shareholder in the company.

If approved by MakeMyTrip shareholders and regulatory authorities, the deal is scheduled to be closed by the end this year, subject.

"We expect this deal to create an even more scalable business with the expertise to transform the booking experience for Indian travelers. I am delighted to be leading such a strong team in our next chapter of high-growth in this dynamic industry," MakeMyTrip founder Deep Kalra said.

Once the deal has been completed, Kalra will remain Group CEO of Makemytrip and Executive Chairman of the company. Co-founder Rajesh Magow will continue in his position as CEO India of MakeMyTrip.

Founder and CEO of ibibo Group, Ashish Kashyap, will join MakeMyTrip's executive team as a co-founder and President of the organisation, MakeMyTrip said in a statement.

As the deal was announced, the shares of MakeMyTrip soared by about 56%. Even though the deal size was not announced, analysts have estimated that with the deal, Ibibo has been valued at about $400-700 million. This deal will also bring RedBus in the fold of MakeMyTrip after RedBus was acquired by Ibibo in 2013.

The two companies together will capture about half of the domestic online hotel bookings and dominate the online air ticketing space.

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