Late Mantra cash splash

Swiss bank’s $46m share spend ahead of sale

A SWISS bank has swooped in for a last-minute profit on Gold Coast’s Mantra Group, splashing $46.3 million on shares 48 hours before trading of them ceased forever.

Credit Suisse, an active trader of Mantra stock, became an 8.17 per cent owner of the company on Monday, ahead of the company’s $1.2 billion sale to AccorHotels being confirmed by the Federal Court on Wednesday.

The bank’s holding is valued at $96.2 million under the $3.96 per share Accor scheme, with much of it nabbed at $3.88-$3.90 per share, meaning Credit Suisse will cash out with a profit of up to six cents per share.

CEO and director Bob East will also enjoy a decent payday next week with his shareholding worth about $5 million.

Mr East held 765,638 ordinary shares and this week was granted another 494,748 in performance rights, originally not due to vest until 2020.

Mantra shares were suspended from trade for the last time at the close of market on Wednesday, with the transaction to be finalised next Thursday, after shareholders have received their $3.96 per share entitlements.

Documents lodged with the ASX after market close on Wednesday show Credit Suisse traded heavily in Mantra stock in the past four months, buying and selling $146 million worth on March 27 and 28 alone.

Shareholders will receive a 16c special dividend on Wednesday, and the full consideration of $3.80 per share for the sale the following day, when the scheme is scheduled to take effect.

They approved the takeover by the Parisian group near-unanimous vote Monday.

Mr East has confirmed he will leave the company next week, along with two Mantra executives. It is unknown what impact the sale will have on the company’s 50 Cavill Ave headquarters.

The deal will see the nation’s two largest hotel companies combine with a portfolio of about 300 properties. in a on