AccorHotels to acquire Mantra Group in Australia
AccorHotels has signed an agreement with Mantra Group with the view to acquire all of the issued capital in the company by way of a scheme to be approved by Mantra shareholders.
Under the terms of the agreement AccorHotels would offer AUD3.96 in cash for each Mantra share including any potential special dividend.
The offer price represents a 23 per cent premium to the last close price of AUD3.23 as at October 6th.
AccorHotels will pay AUD1.3 billion, equivalent to €0.9billion to complete the deal.
Sébastien Bazin, chairman, AccorHotels said: “We are delighted to have come to an agreement to acquire the Mantra Group.
“This operation will underpin our long-term growth in the Asia Pacific region.
“Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia.
“We are confident that the transaction terms are attractive for shareholders of both groups”.
Mantra is one of Australia’s largest hotel and resort marketers and operators with 127 properties and over 20,000 rooms in hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii.
Chairman of Mantra, Peter Bush, said: “The AccorHotels offer represents an attractive proposition for Mantra and for our shareholders and the board unanimously recommends AccorHotels’ proposal.
“AccorHotels is one of the world’s leading hotel operators and we trust that our business will be in good hands.
“Mantra’s strong expertise in apartments, in particular, and our presence in resort locations are very complementary to the AccorHotels operations in Australia and New Zealand.
“The combined business will be an important part of Australia’s strong and growing tourism market and its customers will benefit from the market leading expertise of both groups.”
Properties in Mantra’s portfolio range from luxury accommodations and coastal resorts to serviced apartments in city and key leisure destinations, under three key brands: Peppers (28 properties), Mantra (75 properties) and BreakFree (24 properties).
Mantra also manages core accommodation services including guest relations and reception areas, restaurants and bars, conference and function centres, pool and entertainment facilities and offices. Mantra has more than 5,500 employees.
AccorHotels and Mantra’s combined geographic footprint, together with enhanced distribution and systems, would form a favourable base from which AccorHotels can expand further in the region.
Mantra’s expertise in apartment management, in particular, will offer a new opportunity for growth.