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MakeMyTrip To Pay $3 Bn To Repurchase Stake: Trip.Com Group
- MakeMyTrip (MMT) will pay nearly $3 Bn to repurchase shares from Trip.com Group.
- Trip.com amended its share repurchase agreement with MMT.
- MMT is set to pay approximately $3 Bn for the repurchase.
- Trip.com expects the transaction to be completed by early July 2025.
- After the repurchase, Trip.com will retain ownership of nearly 16.90% in MMT.
- MMT previously announced plans to raise funds to buy back stake from Trip.com.
- MMT recently raised $3.1 Bn to repurchase Class B shares from Trip Group.
- MakeMyTrip was initially set to issue 14 Mn primary shares but increased it to 18.40 Mn.
- Trip.com will remain the largest minority shareholder in MMT even after reducing its stake.
- MMT is yet to officially disclose the closure of the deal.
- MMT accelerated the repurchase agreement after allegations related to data security were made by EaseMyTrip cofounder.
- MMT denied the allegations of data exposure due to Chinese ownership.
- MMT's board includes founder Deep Kalra, CEO Rajesh Magow, Moshe Rafiah, and four Chinese directors.
- The dispute arose amid tensions between India and Pakistan, following a terrorist attack.
- In summary, MakeMyTrip is repurchasing shares from Trip.com Group for $3 Bn amidst ongoing developments in the ownership structure.
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