Priceline increases stake in Ctrip
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The Priceline Group has announced plans to increase its stake in China’s Ctrip.
The US online travel giant will invest an additional US$250 million in Ctrip, through a convertible bond. When combined with the US$500m investment Priceline made in Ctrip in August 2014, the group will hold a 10.5% stake in Shanghai-based Ctrip.
But his could potentially rise to 15% in future, if Priceline chooses to take up the offer of purchasing more outstanding Ctrip shares.
The timing of the agreement is interesting, as it comes just a week after Priceline’s major rival Expedia sold its majority stake in another Chinese OTA, eLong, to a group of companies including Ctrip.
Priceline and Ctrip first teamed up in 2012, with a mutual content and distribution agreement. This was then followed up by Priceline’s investment in Ctrip in 2014.
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