Mantra says ‘oui’ to $1.2b bid by Accor

Mantra Group Ltd yesterday agreed to a A$1.18 billion (US$920 million) takeover offer from France’s Accor SA, which would put together the two biggest hotel groups in Australia.

The merger would give the combined group about 50,000 rooms or roughly 11% of Australia’s hotel market, according to IBISWorld statistics.

The deal comes as the country’s hoteliers rush to build more rooms to meet growing demand.

Mantra owns 127 resorts, hotels and apartments in Australia, New Zealand, Indonesia and Hawaii, operating more than 20,000 rooms.

The company, which employs 5,500 people, also owns the BreakFree Holidays and Peppers holiday services.

Accor offered A$3.96 per share, which was a 23% premium to Mantra’s last trade before the bid was announced on Monday.

“Mantra’s board has concluded that the sale of the company at a significant premium to market is an attractive outcome for shareholders,” Mantra chairman Peter Bush said in a statement.

Under the deal, Mantra may pay out a special dividend of 23.5 cents per share to its shareholders, which would then be deducted from the A$3.96 that Accor has offered.

The merger will need clearance from Australia’s Foreign Investment Review Board and the Australian Competition and Consumer Commission.