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Sunday 17

December, 201711:05 PM



Mantra urges support for $1.2b Accor deal

Mantra urges support for $1.2b Accor deal

Hotel operator Mantra Group has urged shareholders to support a $1.18 billion takeover offer by Accor SA.

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By AAP 12.10.2017 11:52 AM

Australian hotels operator Mantra Group has given its support to a $1.18 billion takeover proposal from Accor SA, with Mantra directors unanimously recommending shareholders accept the deal.

Mantra said in a statement to the ASX, the French hotel operator offered a price of $3.96 in cash for each Mantra share, which were worth $3.88 at 1152 AEST on Thursday.

The acquisition comes only three days after Mantra granted Accor access to due diligence to determine if a transaction could be agreed on.

Mantra said it will have discretion to pay shareholders a special dividend of up to 23.5 cents per share, which will be deducted from the $3.96 value, subject to factors including available franking credits.

In a statement released to the ASX on Thursday, Mantra's board recommended shareholders vote in favour of the all-cash offer, saying it would deliver a significant premium and because it was subject to limited conditions with no further financing arrangements or due diligence.

AccorHotel chairman and CEO Sebastien Bazin said his company had "long admired" the Mantra business.

"We will be looking to bring together the best of both companies to provide an enhanced experience for our customers and employees in what is an exciting period of growth of the industry in Australia and New Zealand."

In an email to Mantra employees seen by AAP, Mantra chief executive Bob East said management was encouraged by the opportunity to grow the company with the support of a major international operator.

"Together, Mantra Group and AccorHotels would be able to deliver an enhanced offering for our loyal guests, providing them with exciting new offers and access to an international network," Mr East said in the staff email.

The transaction is subject to a shareholder vote in March, 2018, and regulatory approvals including from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

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