MakeMy Trip to acquire My Guest House Accommodations

NEW DELHI: NASDAQ-listed online travel services firm MakeMy Trip Ltd has said it will acquire 29 per cent stake in Delhi-based My Guest House Accommodations (MGH) for around USD one million this month, with option to fully takeover the firm over a period of eight years.

MGH is engaged in the business of aggregation, sales and distribution of hotel room with a focus on budget accommodations and serviced apartments.

The company said it has entered into agreements with My Guest House Accommodations (MGH) and its existing shareholders for share subscription and purchase on Tuesday.

Pursuant to these agreements, the company can acquire 100 per cent of MGH's ordinary shares based upon achievement of various business parameters spread over eight years.

"We expect the first closing to take place in November 2011, pursuant to which the company will acquire approximately 29 per cent stake in MGH against a cash investment of approximately USD one million," the statement said.

In August this year, MakeMy Trip had announced that it along with its largest share holder SAIF Partners, will pick up 76.6 per cent stake for USD 18.5 million in Le Travenues Technology, which operates online travel search engine www.ixigo.com.

In May this year, MakeMy Trip had also acquired 79 per cent equity stake in Singapore-based Luxury Tours & Travel Pte Ltd for USD 3 million.

The company's revenues for the three months ended September 30, 2011 increased 83.8 per cent to USD 43.8 million as against USD 23.8 million in the same quarter last year.

"Our profit for the quarter ended September 30, 2011 was USD 0.07 million as compared to a loss of USD 1.8 million in the quarter ended September 30, 2010," the statement said.