Mantra Group CEO Bob East to leave company at end of May to pursue new business, boards

IN less than a fortnight, Mantra Group CEO Bob East will leave the group he floated and grew into a billion-dollar company — but says he won’t “grow dreadlocks and sit on the beach” any time soon. Here’s his next move.

What’s next for outgoing Mantra CEO Bob East? A holiday, naturally. Photo: Kit Wise

IN less than a fortnight, Mantra Group CEO Bob East will leave the group he floated and grew into a billion-dollar company — but says he won’t “grow dreadlocks and sit on the beach” any time soon.

Shareholders approved the $1.2 billion sale of the company to Accor Hotels in a near-unanimous vote at a special meeting in Sydney yesterday.

It will be the second Gold Coast listed company in six weeks to be sold to a foreign company after Billabong shareholders accepted a $208 million offer from Boardriders Inc in March.

More than 95 per cent of Mantra shareholders took part in the vote and 99.9 per cent of voting shareholders voted in favour of the sale, which already has approval from the Australian Competition and Consumer Commission, the Foreign Investment Review Board and Federal Court.

The company previously announced chief financial officer Stephen Hobson and chief operating officer Tomas Johnsson would leave if the sale was approved.

HIGHS AND LOWS OF GOLD COAST’S LISTED COMPANIES

RECORD REVENUE BUT EARNINGS DOWN: MANTRA

GET A NEW TABLET WHEN YOU SUBSCRIBE TO THE GOLD COAST BULLETIN

Mantra CEO Bob East. Photo: Kit Wise

A second Federal Court approval on Wednesday is required to finalise the sale, however, it is a functional hearing that is likely to pass as a formality.

Mr East and his family will stay on the Gold Coast and he plans to also to stay on as Tourism Australia chairman.

He’ll take on a new board, chairing Wollongong-based Experience Co, a listed adventure tourism and leisure company with market capitalisation of $355 million that runs white water rafting, hot air ballooning and canyoning operations, as well as 18 skydiving sites in Australia and three in New Zealand.

Bob East’s new chairmanship is of Experience Co, which operates skydiving sites and other adventure tourism businesses.

Mr East will take the reins after the company reports its half-year financials — which they’ve flagged will be down on guidance thanks to rainfall in North Queensland.

“It’s in a very similar position to what Mantra had a number of years ago,” he said.

“They’re a good company and I’ve had my eye on them for some time.

“That excites me, but it’s not a full-time job, it’s a chairman role.

“It makes me keep my suit, so I can’t grow dreadlocks and sit on the beach just yet.”

Mr East, number two on the latest Gold Coast Bulletin’s Power 100 list, joined Mantra in 2006, and oversaw its listing on the ASX in 2014.

Mantra chief executive officer Bob East rings the bell to mark Mantra Group's listing on the Australian Stock Exchange in 2014.

He said he’d “invested heavily” in a new venture which he declined to detail but said would launch next year.

“I’ve been speaking to some investors around the place and I’m going to do some business — but I’m going to take my time putting that together,” he said.

“Quite fortunately I’ve got a few offers that will wait for me until next year.

“It is in the tourism and services industry.

“I’ve had the opportunity to reflect on this for a year and work out where the growth markets are and I think there are some gaps in the market.

“I’ll be looking to do, in time, something like (the growth achieved) in Mantra, but not in the hotel space. “We’ve got pretty big plans.”

Clare Rigby, 21, and Luke Roberts 20, on the pool deck at Soul Mantra Surfers Paradise. Pic Tim Marsden

In the meantime, Mr East’s plans involve camping with his family for a couple of weeks, and planning a bigger family holiday for later in the year.

In a statement to the ASX, Mantra said, subject to the approval, the court orders would be lodged with ASIC on Wednesday afternoon, when the sale would take legal effect.

Mantra shares will be suspended from trading that day, with shareholders to receive their $3.96 per share entitlements by May 31.

The deal will see the nation’s two largest hotel companies combine with a portfolio of about 300 properties.

The MTR code will vanish from the ASX200 when the deal goes through, to be replaced in the Dow Jones S & P list by IDP Education Ltd.