This article is from the Australian Property Journal archive
AUSTRALIA’S hotel industry could be in for a major shake-up, with French group Accor making a $1.2 billion takeover bid for Mantra Group.
The merger would create a business with more than 300 hotels and 50,000 rooms, and bring together almost 15 brands.
Accor’s proposal comes in at $4.02 per share, including Mantra’s 2017 full-year final dividend of 6c that has already been paid, and potentially including a special dividend, and is at a clear premium to Mantra’s closing price of $3.23 on Friday.
Mantra has more than 125 properties and 20,000 rooms across its Mantra, Peppers and Breakfree brands through Australia, Indonesia and Hawaii, and in August acquired the Art Series hotel chain for $52.5 million, adding 1,000 rooms and seven boutique hotels to its portfolio.
Paris-based Accor operates several brands throughout Australia, including Sofitel, Novotel, IBIS, Mercure and Grand Mercure, and opened the $500 million Sofitel Darling Harbour last week.
Mantra became the ASX’s best-performing stock yesterday after it confirmed Accor’s proposal in a statement to the ASX, its share price rocketed by 53 cents to close at $3.76.
“Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra Board. The discussions are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions, including (without limitation) the approval of both the Mantra and Accor Boards and agreement on documentation,” it said.
“There is no certainty that an agreement will be reached or that the proposal will be implemented.
The group said it had retained Highbury Partnership as financial adviser and Baker McKenzie as legal adviser.
Mantra has been spoken about publicly as a takeover target for a number of months, including interest from global operator Marriott.
Australian Property Journal
