MakeMyTrip Secures $2.5 Billion, Reduces Trip.com Stake
Travel company MakeMyTrip has raised over $2.5 billion to reduce the stake of China-based Trip.com Group through share and convertible bond sales. This action aims to cut business ties due to geopolitical tensions. The company's move will reduce Trip.com's voting power and board nomination rights significantly.
- Country:
- India
In a strategic financial maneuver, MakeMyTrip has announced it is raising over $2.5 billion through share sales and convertible bonds, as per its NASDAQ filings. The raising is aimed at reducing the Chinese company Trip.com Group's influence, in a climate of geopolitical tension between India and China.
The Indian travel giant plans to apply the net proceeds from the shares and the Concurrent Notes Offering to buy back some of its Class B shares held by Trip.com. This move aligns with the growing sentiment against maintaining business relationships with companies from countries seen as adversarial, such as China.
With this successful share buyback, Trip.com's total voting power in MakeMyTrip will drop below 20%, a significant decline from its former 45.34%, along with reduced board representation. This shift highlights not only MakeMyTrip's adaptability to political climates but also a larger trend in business autonomy.
(With inputs from agencies.)
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