MakeMyTrip buys majority stake in Singapore agency
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Online travel service MakeMyTrip has acquired a majority stake in Luxury Tours and Travel Pte Ltd., a Singapore-based travel agency this week, Wall Street Journal reported.Announcing its annual results, the company said it had acquired 79% equity stake in Luxury Tours for US$3 million. The Gurgaon-based travel site will invest US$750,000 in the company, in or more tranches until June 2012, to get new equity shares in Luxury Tours.The report said it would also acquire the remaining shares of Luxury Tours from existing shareholders in cash, in three tranches, over a three year period ending June 2014.For the year ended March 31, 2011 MakeMyTrip posted total net profit of US$4.8 million, compared to net loss of US$? 6.2 million in the previous fiscal. “Fiscal year 2011 marked an important milestone for MakeMyTrip as we successfully transitioned into a public listed company,” MakeMyTrip Chairman and CEO Deep Kalra was quoted saying by Economic Times.The firm is optimistic of its long term growth prospects as the population of middle class travellers and Internet users continues to expand in India. “The company is setting its FY12 full year guidance range for revenue less service costs at US$86 million to US$89 million,” the statement said. This guidance includes the company’s views on the possible impact to travel demand from current high crude oil prices and high inflation rates in India, it added.
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