Online travel operator MakeMyTrip Ltd. is raising $165 million from China's travel booking services provider Ctrip.com International Ltd. and South African media group Naspers Ltd. The company also plans to raise another $165 million from investors.
Ctrip and a Singapore subsidiary of Naspers have bought more than 4.5 million shares in the company, according to a filing with the U.S. Securities and Exchange Commission (SEC).
Naspers' arm MIH Internet SEA Pte. Ltd. has picked up more than 80 percent of the ‘Class B' shares which can be converted into ordinary shares on a one-on-one basis, according to the release. Class B shares usually have different voting rights than ordinary shares.
MakeMyTrip also wants to raise an additional $165 million via a definitive share purchase agreement for placement of its ordinary shares, the company said in the same filing. The company will issue 45.83 lakh shares to investors at a price of $36 per share to raise this amount. Morgan Stanley India is the sole placement agent for this issue.
Both the transactions are likely to be completed by May 5. The total proceeds of $330 million will be used to fund business expansion, strategic investments, technology and product development along with general corporate purposes.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
