A naukri.com initiative
Inc42
4w
201
Image Credit: Inc42
MakeMyTrip Raises $3.1 Bn To Buy Back Stake From China’s Trip.com
- MakeMyTrip raises $3.1 billion to repurchase a portion of its Class B shares from China’s Trip Group.
- The funding includes a mix of convertible notes and a primary equity offering.
- The primary equity follow-on offering raised $1.66 billion by selling 18.4 million new ordinary shares at $90 each.
- The remaining funds came from a 5-year convertible senior notes offering with 0% coupon and 35.0% conversion premium.
- Morgan Stanley led the offerings as the bookrunner and stabilisation agent.
- MakeMyTrip planned to raise $1.4 billion through convertible senior notes and $1.25 billion was netted via notes offering to qualified institutional buyers.
- The company increased the number of primary shares from 14 million to 18.4 million for the equity round.
- The capital infusion is aimed at reducing Trip Group's stake in MakeMyTrip from 45.95% to 16.90-19.99%.
- MakeMyTrip and Trip Group entered a share repurchase agreement to facilitate the stake reduction.
- Allegations were made against MakeMyTrip regarding data exposure due to Chinese ownership amidst military tensions.
- The deal raises questions about the composition of MakeMyTrip's board post transaction involving its Chinese stakeholders.
Read Full Article
11 Likes
For uninterrupted reading, download the app