Accor sees deal as chance to grab bigger slice of Australian market
PARISIAN hotel group AccorHotels will use its planned acquisition of Gold Coastbased Mantra Group to further expand its Australian footprint.
The board of Surfers Paradise-based Mantra yesterday approved its sale to French hotel giant AccorHotels for $1.182 billion, voting unanimously to accept Accor’s offer to acquire all shares, at $3.96 each.
It will recommend shareholders at a meeting planned for March vote in favour of the deal, which must still pass through regulatory approvals including a tick from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.
Paris-based Accor yesterday declined to detail its plans for
Mantra, including its headquarters at 50 Cavill Ave, but said it would use the group’s 127 properties – with about 115 in Australia – to expand its reach.
“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,” a statement from Accor said.
“Mantra’s expertise in apartment management, in particular, will offer a new opportunity for growth.”
Shares soared more than 20 per cent this week after news broke Mantra was considering the deal, with the price trading at $3.93 yesterday morning.
In an announcement to the Australian Stock Exchange, Mantra’s board announced it had entered a binding agreement with Accor at $3.96 per share, with the directors agreeing to vote in favour of the deal as shareholders themselves, unless a “superior proposal” is forthcoming, or it is determined not to be in shareholders’ best interests.
Mantra has appointed an independent expert to determine whether the scheme is in the best interests of shareholders.
Chairman Peter Bush said the board believed it was.
“After careful consideration, the board believes that the offer price of $3.96 cash per share recognises the strategic value of our business and our success in becoming a leading accommodation provider,” he said.
“The offer represents compelling value and provides an attractive opportunity for shareholders to realise this value.”
Accor chairman and CEO Sebastien Bazin said he had long admired the Mantra business, including “its brands and properties as well as its people and processes”.
“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,” he said. Subject to regulatory and shareholder approvals, the transaction should be completed by the end of the first quarter 2018.