MakeMy Trip to buy My Guest House

The company's revenues for the 3 months ended Sept increased 83.8% to $43.8 mn.

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 $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 $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 $18.5 million in Le Travenues Technology,which operates online travel search engine http://www.ixigo.com.

Story continues below this ad

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

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

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

Police personnel seen to control the situation during a massive protest over the statehood demand and the inclusion of Ladakh under the Sixth Schedule, in Leh on Wednesday. (ANI Video Grab)

Statehood protest takes violent turn in Ladakh, BJP office set ablaze in Leh

India13 min ago

Protests in Ladakh turned violent as students and youth organisations demanded statehood and Sixth Schedule status. Two elderly protesters fainted, prompting a shutdown call. A BJP office and security vehicle were set on fire. Activist Sonam Wangchuk urged for a peaceful approach. The demand for Sixth Schedule status is due to Ladakh's tribal-majority population and direct central administration.

View all shorts

Live Blog