China

Ctrip to Reportedly Bid For Sweden-Based Etraveli

Summary:

  • China’s largest online travel services company Ctrip.com (CTRP.NASDAQ) reportedly plans to bid for Sweden-based, but German-owned, Etraveli AB, as Ifeng Tech reports.
  • Etraveli AB is the online travel service unit under leading German media firm ProSiebenSat.1 Media SE.
  • People familiar with the situation have said that other companies besides Ctrip, such as The Blackstone Group, are also interested in bidding for Etraveli AB.

Why It Matters:

  • ProSiebenSat.1 Media’s CEO Thomas Ebeling recently said publicly that the company is evaluating its online travel services business and that it is attracting “broad interest” from both financial and strategic investors.
  • Etraveli provides online travel services in 46 countries across the world. ProSiebenSat.1 announced the acquisition of Etraveli in 2015 at which time Etraveli was valued at EUR 235 million.
  • The acquisition of a stake in Etraveli could help Ctrip expand in the international market. The market believes that currently Etraveli has a valuation of as high as EUR 500 million, or USD 543 million.