Ctrip has given up almost 6% of its shares in order to gain a 49% stake in MakeMyTrip, the Indian online travel agency where it's had an interest since 2016.
The share exchange has come about following an agreement with one of MakeMyTrip's investors, Naspers.
Ctrip worked with South African internet group Naspers in May 2017 to back MakeMyTrip with a $330 million investment.
There were two components to the financing - $165 million coming from the placement of ordinary shares at a cost of $36 a share with unnamed investors and the same amount coming via a purchase deal from the pair.
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This financial support came 15 months after Ctrip's initial $180 million investment in MakeMyTrip.
Naspers will no longer own any shares in MakeMyTrip but, instead, receives a sizable chunk of Ctrip in return.
Rajesh Magow, co-founder and CEO for India of MakeMyTrip, says: "Today's announcement provides a major boost for MakeMyTrip and the rapidly growing travel industry in India.
"This partnership will benefit all our stakeholders including employees, customers and business partners. We look forward to working with the Ctrip team to continue to take our business to the next level."
The share-swap program is expected to close during the second half of 2019. Ctrip's share in MakeMyTrip will represent 4% of the OTA's total voting power.
Naspers first entered the Indian market in early 2016 when it co-invested $250 million along Chinese search brand Tencent in Ibibo Group.
Six months later, MakeMyTrip took over the Ibibo Group, giving Naspers a 40% stake in the merged business.
* Check out with this interview Magow during The Phocuswright Conference 2018 in Los Angeles.
PhocusWire @ Phocuswright 2018 - MakeMyTrip on capturing the next wave of consumers