Yatra.Com has announced its acquisition by Terrapin 3 acquisition corporation (TRTL- special purpose acquisition company) at an Enterprise
Value (EV) of $218mn. Current shareholders of Yatra will continue to own at least 35% of the shareholding of the company. The first $100mn of cash from TRTL will be allocated to the new company?s balance sheet and the remainder will be allocated 80% to current Yatra shareholders and 20% as cash to the new company?s balance sheet. Cash payments to current Yatra shareholders will be capped at $80mn. Yatra mgmt intends to use these proceeds to focus on the budget hotel space. This could lead to increased competitive intensity in an already aggressive market.
TRTL made the investment in Yatra given 1) its good brand and 2) low cashburn in an intense market without sacrificing the growth.
