Priceline Group Announces $250 Million Investment in Ctrip
The Priceline Group, which operates Priceline.com, Booking.com and Kayak.com, among other travel websites, announced on Tuesday that it will make an additional investment of $250 million in China's top online travel company, Ctrip.com International Ltd.
Priceline's investment will be made through a convertible bond.
Meanwhile, Ctrip has granted Priceline permission to increase its ownership through the acquisition of Ctrip's American depositary shares in the open market. As a result, Priceline could possess up to 15 percent of Ctrip's outstanding shares.
"Ctrip continues to be a very important partner for The Priceline Group in China, and we look forward to continuing to build upon that partnership," said Priceline Group president and CEO Darren Huston in a statement. "We consider Ctrip a market leader in China and we're investing in a company and a team that we believe fits well with our long-term view of China as a market and the Chinese people as global travelers."
Ctrip chairman and CEO James Liang said the announcement "aligns with our continued commitment to drive our existing commercial agreement with The Priceline Group forward in order to deliver more value for travelers seeking great accommodations all over the world."
The two companies first established a commercial relationship back in 2012, and recently expanded it last year with a $500 million convertible bond issued to Priceline in August 2014.
As part of the ongoing relationship, Priceline and Ctrip cross promote their inventory between brands.
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