rakuten-sells-203-stake-in-ctrip

Rakuten sells 20.3% stake in Ctrip

The deal prices at a marginal 2.56% discount to Ctrip.com's August 9 price, netting $505 million for Rakuten of Japan.

JapanÆs largest online retailer, Rakuten, sold its 20.3% stake in Ctrip.com International, China's leading online travel agent, at a 2.56% discount to the stock's last traded price. Rakuten netted $505 million for the shares it has held since 2004.

Investors had Ctrip's traded price on the Nasdaq as ready reference so the seller conducted a three-day marketing exercise without an indicative price range. Investors placed orders either with or without price sensitivity.

Ctrip closed trading on August 9 at $39 and the book was fully covered, with price sensitivity, in the $38-$40 range. The company thus comfortably priced the deal at $38, according to a...

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