0644 GMT - Trip.com's planned divestment from MakeMyTrip could yield net proceeds of $2.5 billion to support overseas expansion and boost shareholder returns, HSBC analysts say in a research note. The Chinese online travel agency announced a share repurchase agreement with MakeMyTrip, the Indian flight-booking platform, under which it will transfer its ordinary shares to the latter for cancellation. Following the transaction, Trip.com's stake in MakeMyTrip will decline to around 20% from 45%, according to HSBC estimates. "We believe the proposed MakeMyTrip disposal will help improve investor conviction in Trip.com's efforts to monetize its existing investments and structurally improve its shareholder-return capacity," they say. HSBC maintains a buy rating on Trip.com's ADRs, with a target price of $78.00. The ADRs last closed 0.4% at $60.67. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
June 18, 2025 02:44 ET (06:44 GMT)
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