Gold Coast Mantra Group board approves $1.182 billion sale of company to AccorHotels

SURFERS Paradise-based Mantra Group has voted on its sale to French hotel giant AccorHotels for $1.182 billion. But it’s not over yet.

Mantra Circle on Cavil in Surfers Paradise, QLD. Picture: Supplied

SURFERS Paradise-based Mantra Group has approved its sale to French hotel giant AccorHotels for $1.182 billion.

The board unanimously voted to accept Accor’s offer to acquire all shares, at $3.96 each, of the group which runs Peppers, Mantra and Breakfree resorts across Australia and South-East Asia.

It will recommend all shareholders vote in favour of the deal at a meeting planned for March, and the deal which must still pass through regulatory approvals including a tick from the Foreign Investment Review Board and the Australian Competition and Consumer Commission.

Paris-based Accor’s plans for the company, including its headquarters at 50 Cavill Ave, are unknown.

Mantra Towers of Chevron in Surfers Paradise, QLD. Picture: Supplied

Shares soared more than 20 per cent this week after news broke Mantra was considering the deal, with the price trading at $3.93 this morning.

In an announcement to the Australian Stock Exchange this morning, Mantra’s board announced it had entered a binding agreement with Accor at $3.96 per share, including a potential special dividend of 23.5 cents per share.

The directors have undertaken to vote in favour of the deal as shareholders themselves, unless a “superior proposal” is forthcoming, or it is determined not to be in shareholders’ best interests.

Mantra has appointed an independent expert to determine whether the scheme is in the best interests of shareholders.

CEO of Mantra Group Bob East and Chairman Peter Bush. Gold Coast-based hotel and resorts operator Mantra Group holds its first annual general meeting, at Manta Hotel, Southbank. Pic Jono Searle.

Chairman Peter Bush said the board believed it was.

“After careful consideration, the board believes that the offer price of $3.96 cash per share recognises the strategic value of our business and our success in becoming a leading accommodation provider,” he said.

“The offer represents compelling value and provides an attractive opportunity for shareholders to realise this value.”

Accor chairman and CEO Sebastien Bazin said he had long admired the Mantra business, including “its brands and properties as well as its people and processes”.

“We will be looking to bring together the best of both companies to provide an enhanced experience for our customers and employees in what is an exciting period of growth of the industry in Australia and New Zealand.”

It is anticipated that subject to regulatory and shareholder approvals, the transaction should be completed by the end of the first quarter 2018.