Mantra Group’s $1.2b sale to Accor Hotels gains approval from Foreign Investment Review Board

THE billion-dollar sale of one of the Gold Coast’s biggest listed companies to a French hotel group could be finalised within weeks, with another milestone reached this morning.

Mantra Towers of Chevron.

THE sale of Mantra Group to Accor Hotels could proceed as soon as May, with the $1.2 billion deal approved by the Foreign Investment Review Board this morning.

Accor’s offer of $3.96 in cash per share for the company has the support of its directors, but still requires approval from the Federal Court and shareholders.

The sale was approved by the Australian Competition and Consumer Commission earlier this month.

HIGHS AND LOWS OF OUR LISTED COMPANIES

CEO Bob East and board member David Gibson at the company’s AGM in November.

It would see the country’s two largest hotel operators create a chain of about 300 properties.

Mantra said it would distribute a booklet with an independent review on the scheme in April, and put the proposal to a shareholder vote in May, with the sale being completed the same month if approved.

Mantra shares were trading at $3.93 this morning.

The operator of the Peppers, Mantra and Breakfree hotel brands, the group has acquired 11 new properties in the past year and reported record revenue in its results for the first half of the financial year.