Coast accommodation provider Mantra confident of sale to France’s Accor Hotels

SHAREHOLDERS of Gold Coast hotel chain Mantra say they have deep concerns over its sale as the company’s bosses prepare to move forward with the deal with a French company.

MANTRA boss Bob East remains confident the sale to France’s Accor Hotels will be rubber-stamped but shareholders worry Australia will lose another local company to a foreign buyer.

Accor, which is seeking to grow its share of the highly-fragmented Australian accommodation market, last month lobbed a $1.2 billion bid for hotel and resort operator Mantra Group.

Mantra Group held its AGM yesterday (AAP Image/Claudia Baxter

The deal requires the approval, not only of shareholders, but also of the nation’s competition watchdog — the Australian Competition and Consumer Commission.

Mantra’s board voted unanimously to accept the offer for Accor to acquire all shares, at $3.96 each.

Mr East, who yesterday addressed shareholders at Mantra’s annual meeting, said afterwards that a shareholder vote was likely during mid-April next year but “there was no date locked in”.

Mantra CEO Bob East and board member David Gibson at the AGM. (AAP Image/Claudia Baxter

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“The ACCC early in the New Year will advise their findings and its broadly expected they will enable that deal to proceed,” he said.

“The final event is the shareholders vote on the approval or otherwise of that deal.”

Artist's impressions of the Mantra Hotel planned for Southport Sharks Club. PHOTO: Supplied

Mr East said he did not believe concerns the merger would reduce competition in the accommodation sector would be a stumbling block.

“When we issued our advice to the market we stated we did not think it would be an issue but I’ll let the ACCC run its course and won’t provide running commentary on the public process.”

Mantra CEO Bob East presided over the AGM. (AAP Image/Claudia Baxter

AGM attendees spoken to by the Gold Coast Bulletin said there was broadbased support from security holders for the takeover of the Surfers Paradise-based company to proceed.

However, they were wary of another Australian company falling into foreign hands.

“Its another company being taken over by an overseas firm,” a Beaudesert-based shareholder said.

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“I’m getting a good price for my shares, however, if they don’t get taken over I won’t be unhappy.”

Mantra’s Towers of Chevron.

A Brisbane shareholder said he was “disappointed” the buyer was a France-based company but did not foresee any shareholder opposition because the offer was an attractive one.

Mantra, which runs Peppers, Mantra and Breakfree resorts across Australia and southeast Asia, posted an after-tax profit of $47.2 million, up 14.2 per cent on the previous year.

It added six new properties in FY17, with another three acquired in the past six months, while it also refurbished 1425 of its 16,500-plus rooms.

Mantra Surfers Paradise & Crown Towers

Among the new projects set to join the portfolio in FY18 is the 100-room Mantra Southport Sharks, due to open in the first half of next year.

Mr East said the Southport hotel would include a rooftop bar, overlooking Gold Coast University Hospital and Griffith University.

“I went there on Friday. It is still under construction but I got to visualise it. It will be in that precinct an absolute hub for students, workers, guests, Southport Sharks members, and I think it will trade incredibly well.”

The Sharks hotel is under construction.