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Prosus to buy 10% stake in Indian online travel agent for $146m
Prosus will acquire a 10.1% stake in India’s Ixigo for 13 billion rupees (US$146 million).
Ixigo, an online travel booking platform formally known as Le Travenues Technology, will issue new shares to Prosus at 280 rupees (US$35.98) each, about 10.5% below the previous day’s closing price.
Ixigo’s stock initially fell at market open, but later rose by 1%.
The company plans to use up to 3.2 billion rupees, or 25% of the funds, for growth projects including new AI platforms and hotel business expansion.
Proceeds will also support ad, branding, and acquisitions.
Prosus, based in the Netherlands, holds major investments in Indian companies such as Swiggy and PayU.
🔗 Source: Reuters
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Prosus (PRX.AS) will buy 10.1% of India’s Ixigo (LETR.NS) for 12.96 billion rupees ($146 million). The companies confirmed the deal on Friday.
Ixigo, formally Le Travenues Technology, will issue new shares to Prosus on a preferential basis at 280 rupees per share. That price sits 10.5% below Ixigo’s Thursday close. A preferential issue is a direct allotment to a specific investor at a set price rather than a public offering.
Ixigo’s stock opened slightly lower at 310 rupees in early trade, then rose 1%.
The company plans to use 25% of the proceeds, up to 3.24 billion rupees, on growth. It will develop new artificial intelligence platforms and expand its hotels business. It also plans to fund advertising and branding. It will pursue acquisitions.
India hosts some of Prosus’ largest holdings in its $6.5 billion portfolio. They include food and grocery delivery platform Swiggy and fintech firm PayU.
($1 = 88.7950 Indian rupees)
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