- Trip.com Group (TCOM, Financial) sells a portion of its Class B shares in MakeMyTrip, yet remains the largest minority shareholder.
- MakeMyTrip funds the repurchase through a convertible notes offering and a public offering of ordinary shares.
- TCOM agrees to a 180-day lock-up period as part of the transaction terms.
Trip.com Group Limited (TCOM), a leading global travel service provider, has announced a strategic plan to sell a portion of its Class B ordinary shares in MakeMyTrip back to the company for cancellation. This initiative is part of Trip.com's broader strategy to optimize its investment portfolio and increase shareholder value.
Following the completion of this share repurchase, Trip.com will maintain its status as MakeMyTrip's largest minority shareholder, ensuring continued strategic influence over the company. The move provides Trip.com with immediate capital return while maintaining a pivotal partnership with MakeMyTrip.
To finance the repurchase, MakeMyTrip is issuing convertible senior notes under Rule 144A and conducting a concurrent public offering of ordinary shares. As part of the transaction, Trip.com has agreed to a 180-day lock-up period with customary exceptions, which limits its ability to sell its remaining shares during this period.
Despite the partial sale, Trip.com aims to continue supporting the growth and success of MakeMyTrip, aligning with its goal of sustaining strategic alliances and fostering robust business relationships in the global travel sector.
