Accor makes $1.2 billion bid for Mantra

Australia’s second biggest hotel operator Mantra Group has confirmed receiving a $1.195 billion takeover offer from the Paris-based hotel giant Accor.

Accor is the company behind the Ibis, Mercure and Novotel hotel brands.

Mantra told the stock exchange Accor had made the indicative, non-binding proposal to acquire the group at $3.96 a share, or at $4.02 per share less the financial fiscal 2017 dividend that has already been paid and including a potential special dividend.

Mantra said the discussions are incomplete.

“If any Proposal is agreed, the proposal will be subject to regulatory approvals and other conditions to be determined,” Mantra said.

“There is no certainty that an agreement will be reached or that the proposal will be implemented.”

It said Accor had been granted access to due diligence “to determine if a transaction can be agreed and recommended unanimously by the Mantra Board”.

A takeover of Mantra would combine Australia’s two biggest hotel operators, covering a dozen brands, over 300 hotels and more than 50,000 rooms.

by Leon Gettler, October 10^th 2017