South African internet firm Naspers will exit online travel company MakeMyTrip by selling its entire shareholding to Chinese travel major Ctrip.com International.
Naspers will get a 5.6 per cent stake in Ctrip.com International for selling its stakeholding in MakeMyTrip, according to a statement the internet firm.
Ctrip.com, an existing stakeholder in MakeMyTrip, will increase its stake in Indian travel company to 49 per cent after the completion of the deal.
The transaction is expected to close as soon as practicable in the second half of 2019, the statement said.
"The agreement we have announced today is a significant step in the growth ambitions of both MakeMyTrip and Ctrip and we believe continuing to support them as a shareholder will create additional value for Naspers and our shareholders," Naspers CEO Bob van Dijk said.
The share exchange transaction allows Ctrip to enjoy a larger exposure to the Indian travel market and benefit from the growth of MakeMyTrip, Naspers said.
MakeMyTrip Chairman and Group CEO Deep Kalra said, "We have worked with Ctrip in the past years and are excited to take this partnership to the next level. We will leverage this investment to benefit from the tremendous growth potential in travel and tourism between our two countries."
Ctrip Co-founder and Executive Chairman James Liang said: "Over the past years we have witnessed the great achievements of MakeMyTrip, and we are confident that MakeMyTrip will extend its success in the future."
"Today's announcement provides a major boost for MakeMyTrip and the rapidly growing travel industry in India. This partnership will benefit all our stakeholders including employees, customers and business partners," MakeMyTrip Co-founder and CEO-India Rajesh Magow said.
Shares of MakeMyTrip were trading higher by 7.02 per cent at USD 28.21 on Nasdaq.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)