This post has been updated with inputs from the conference call MakeMyTrip and GoIbibo are merging, is what appears to be a consolidation of the two largest online travel players in India. In the travel space, the combined entity includes: MakeMyTrip, goibibo, redBus, Ryde and Rightstay, which together processed 34.1 mm transactions during FY2016. Financials terms of the transaction What we know: Following the transaction, Naspers owned Ibibo will be merged into MakeMyTrip, and the Naspers-TenCent combine will become the single largest shareholder in the combined, listed entity, with 40% stake. Chinese OTA Ctrip, which invested $180 million into MakeMyTrip in January 2016, will own around 10% stake in the entity following the merger, after its convertible debentures are converted. The transaction is expected to close by December 2016 and is subject to shareholder and regulatory approvals Naspers will contribute 40% of the working capital: "Ibibo would account for 40% of the cap table, and hence bring in 40% of the net working capital on the balance sheet of Makemytrip by the end of the period. It's cash plus net working capital. If there's a shortfall, that difference will be made up by the shareholders of Ibibo." However, "Final cash infusion is linked to closing, and we'll be able to share more color on that as we get to closing." Shareholder approval is apready in: from SAIF Partners and Ctrip The regulatory approval will be from the Competition Commission of India. This will be interesting, because these are effectively the two…
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