The South African internet firm Naspers will exit online travel company MakeMyTrip by selling its entire shareholding to the Chinese travel major Ctrip.com International in a share swap deal.
Naspers will get a 5.6 percent stake in Ctrip.com International in exchange for selling its stakeholding in MakeMyTrip, according to its statement. On completion, this deal will increase Ctrip.com's existing stake in the Indian travel company to 49 percent.
The transaction is expected to close as soon as practicable in the second half of 2019, the statement said.
"The agreement we have announced today is a significant step in the growth ambitions of both MakeMyTrip and Ctrip and we believe continuing to support them as a shareholder will create additional value for Naspers and our shareholders," Naspers CEO Bob van Dijk said.
Naspers said that the share exchange transaction allows Ctrip to enjoy a larger exposure to the Indian travel market and benefit from the growth of MakeMyTrip.
Shares of MakeMyTrip closed 8 percent higher at $28.47on Nasdaq on Friday.