AccorHotels is on the acquisition trail again, this time buying Mantra Group, one of Australia’s largest hotel and resort marketers and operators with 127 properties and over 20,000 rooms.
The French hotel group has just inked the agreement to buy the group and to acquire all of the issued capital in Mantra by way of a scheme of arrangement to be approved by Mantra shareholders.
Under the terms of the agreement AccorHotels will offer A$3.96 (US$3.10) in cash for each Mantra share including any potential special dividend.
“The acquisition will be accretive to earnings per share in the first year of ownership pre-synergies. AccorHotels will pay A$1.3 billion (US$1,018 million),” AccorHotels said in a statement.
Mantra’s portfolio includes hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii under the Peppers (28 properties), Mantra (75 properties) and BreakFree (24 properties) brands.
AccorHotels said that the “combined geographic footprint, together with enhanced distribution and systems, would form a favorable base” for it to expand further in the region. It also sees a new opportunity for growth in “Mantra’s expertise in apartment management”.
Sébastien Bazin: Acquisiton underpins group’s long-term growth in Asia Pacific (Image credit: AccorHotels)
Elaborated Sébastien Bazin, chairman and chief executive officer of AccorHotels: “This operation will underpin our long-term growth in the Asia Pacific region. Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia.”
Chairman of Mantra Peter Bush, chairman of Mantra said its portfolio of hotels, resorts and apartments are complementary to the AccorHotels operations in Australia and New Zealand.
“The combined business will be an important part of Australia’s strong and growing tourism market and its customers will benefit from the market leading expertise of both groups”.
The transaction is subject to regulatory approvals, including from the Australian Foreign Investment Review Board, the Federal Court of Australia and the Australian Competition and Consumer Commission, as well as the approval of Mantra shareholders and other customary conditions. The transaction is expected to be completed by the end of the first quarter 2018.
•Featured image (Peppers Seminyak Bali) credit: Peppers Seminyak Bali
