AccorHotels places $1.2b bid for Mantra Hotels in Australia

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

AccorHotels has made a non-binding $1.2 billion takeover offer for Mantra Group, Australia’s second-largest hotel operator.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

French-based Accor can be already the largest hotel operator from the country.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

A merger of the two biggest accommodation providers would certainly create a local hotel giant having a national portfolio of more than 300 hotels.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

These would certainly be spready across more than a dozen brands along with also control in excess of 50,000 rooms.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

If the deal were to complete, This particular would certainly create a company about 5 times bigger than its nearest competitor, franchisor Choice Hotels.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

There had been speculation in March This particular year international operators such as Marriott, InterContinental along with also Hyatt might have been interested in acquiring the chain.

AccorHotels Places $1.2b Bid For Mantra Hotels In Australia

However, no bid emerged.

The indicative along with also non-binding proposal coming from Accor pitched at $3.96 cash a share, or $4.02 a share including the 6¢ final dividend.

This particular can be a 23 per cent premium to Mantra’s closing cost of $3.23 on Friday.

This particular values the business at $1.17 billion.

Mantra was floated at $1.80 in June 2014 by CVC along with also UBS.

This particular owns along with also operates more than 125 properties along with also in excess of 20,000 rooms across Australia, Indonesia along with also Hawaii under the Mantra, Peppers along with also Breakfree brands.

Accor can be one of the largest hotel operators from the globe with 4,0 hotels.

Mantra, led by chief executive Bob East, has granted Accor access to due diligence to determine if a transaction can be agreed along with also recommended unanimously by the board.

In a statement, Mantra management said the discussions were incomplete along with also any entry by the parties into a binding agreement remained subject to quite a few conditions.

These include the approval of both the Mantra along with also Accor boards.

“If any proposal can be agreed, the proposal will be subject to regulatory approvals along with also additional conditions to be determined,” the statement said.

“There can be no certainty which an agreement will be reached or which the proposal will be implemented.”

AccorHotels places $1.2b bid for Mantra Hotels in Australia

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