MakeMyTrip To Pay $3 Bn To Repurchase Stake: Trip.Com Group

Nasdaq-listed online travel aggregator (OTA) MakeMyTrip (MMT) will pay nearly $3 Bn to repurchase shares from its Chinese investor Trip.com Group Limited.

In a filing with the US Securities and Exchange Commission (SEC), Trip.com said that it amended its share repurchase agreement with the Indian travel tech company on June 23. As per the restated deal, MMT will pay the aforementioned amount to acquire the stake.

“… in relation to the amended and restated share repurchase agreement entered into between the Company and MakeMyTrip…, pursuant to which MakeMyTrip will pay approximately $3 Bn as consideration for the aforementioned repurchase,” the filing read.

Trip.com expects the transaction to be completed by early July 2025. The Chinese company said that it will retain ownership of nearly 16.90% in “MakeMyTrip’s issued and outstanding shares” post the repurchase deal.

This comes weeks after the Nasdaq-listed OTA first said that it would raise funds via senior notes and primary offering to buy back stake from its Chinese investor Trip.com Group.

Subsequently, last week, MMT raised $3.1 Bn to repurchase a portion of its Class B shares from Trip Group.

On the equity round front, MakeMyTrip was initially expected to issue 14 Mn primary shares as part of the raise. But, the company subsequently increased this number to 18.40 Mn shares at $90.

Even after reducing its stake to 16.9%, the Chinese backer will continue to be the largest minority shareholder in the Gurugram-based travel tech giant.

MMT hasn’t made an official disclosure regarding the closure of the deal yet.

MMT pushed the pedal on the repurchase agreement a month after EaseMyTrip cofounder Nishant Pitti alleged that the Nasdaq-listed travel tech company may expose the data of Indian soldiers, who use the platform, due to its Chinese ownership.

However, MMT rejected the allegations and termed them “malicious”. The tiff between the two homegrown travel tech giants came in the backdrop of the conflict between India and Pakistan in the aftermath of Pahalgam terrorist attack.

Notably, MMT’s board currently comprises founder and chairman Deep Kalra, cofounder and CEO Rajesh Magow, Moshe Rafiah, and four Chinese directors.

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