NASDAQ-listed MakeMyTrip will acquire 29 percent stake in Delhi-based My Guest House Accommodations (MGH) for around $1 million (Rs. 5.2 crore), with option to fully takeover the firm over a period of eight years.
Kochhar & Co advised MGH with a team led by Partner Kapil Arora.
ARA Law advised MakeMyTrip with a team led by Managing Partner Rajesh N. Begur.
VCCircle reports, MakeMyTrip has entered into a shareholders’ agreement and share subscription and purchase agreement with MGH and its existing shareholders. Pursuant to these agreements, MakeMyTrip can acquire 100 per cent of MGH's ordinary shares through an earn-out structure based upon the achievement of various business parameters spread over eight years.
Founded by Jitender Arora and Varun Chawla, MGH Accomodations is an aggregator and distributor of hotel rooms with a focus on budget accomodation and serviced apartments.
According to Business-Standard, in August this year, MakeMyTrip had announced that it along with its largest share holder SAIF Partners, will pick up 76.6 percent stake for $18.5 million in Le Travenues Technology, which operates online travel search engine www.Ixigo.Com.
In May this year, MakeMyTrip had also acquired 79 percent equity stake in Singapore-based Luxury Tours & Travel for $3 million.