MakeMyTrip to Raise $2.6 Billion to Cut China's Trip.com Group Stake

MakeMyTrip cutting back Trip.com's role might be a sign that ownership structures are no longer just numbers on a chart. They are tied to bigger questions around national interest, transparency, and trust.

Indian online travel agency MakeMyTrip said it is raising over $2.6 billion to buy back shares from its long-time investor China’s Trip.com Group. With the proceeds MakeMyTrip aims to buy back part of its ownership from existing stakeholder Trip.com Group, the online travel agency said in a stock exchange filing on Monday.

“The interests of Trip.com and its affiliates may be different from or conflict with the interests of our other shareholders,” MakeMyTrip said in a stock exchange filing on Monday. "Their influence may result in the delay or prevention of a change of management or control of our company or other significant actions affecting our company, even if such transactions or actions may be beneficial to our other shareholders."

MakeMyTrip has announced two big fundraising efforts: it’s issuing 14 million new shares, with an option to add 2.1 million more, and it’s also raising up to $1.25 billion through convertible bonds.

This will reduce Trip.com Group’s stake in MakeMyTrip to under 20%, do