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Weeks after EaseMyTrip founder and chairman Nishant Pitti highlighted Chinese ownership in MakeMyTrip, the Nasdaq-listed company has now proposed to raise over $2 Bn to buy back stake from its Chinese investor Trip.com Group Limited.
The company will raise the capital via senior notes and primary offering:
— It plans to raise $1.25 Bn via convertible senior notes due 2030 which will be offered to qualified institutional buyers (QIBs). The notes will be convertible into ordinary shares, at the option of the holders, at any time prior to the close of business on the second business day preceding the maturity date, which is July 1, 2030
— MakeMyTrip said it will raise the remaining amount via issue of 14 Mn primary shares. It said that the offering price for the primary equity offering will be determined at the time of its pricing. Taking the current price of the shares of MakeMyTrip on Nasdaq ($90.32), the company would be raising $1.23 Bn.
Notably, MakeMyTrip entered into a share repurchase agreement with Trip.com yesterday to repurchase a portion of its Class B ordinary shares in the travel tech company. Post the completion of the proposed repurchase, Trip.com will continue to remain the largest minority shareholder of MakeMyTrip.
As per Investing.com, Trip.com is currently the largest shareholder of MakeMyTrip (MMT) with a 45.95% stake. Trip acquired a 42.5% stake in the company in 2019.
(The story will be updated soon)
The post MakeMyTrip To Raise Over $2 Bn To Reduce Chinese Ownership appeared first on Inc42 Media.
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