Coffee Club owner Minor signals a major interest in Mantra
Another suitor has emerged for hotel operator Mantra. This time Minor International is being touted as a potential buyer.
Thai group Minor International, which also owns restaurant and cafe chains such as The Coffee Club, purchased a majority interest in Mantra’s Australian rival, Oaks Hotels and Resorts, in 2011.
It has also been suggested that Marriott, based in the US, has been circling the operation.
Some had also suggested that Accor was looking, but chief operating officer Simon McGrath dismissed the speculation.
Mantra also has said that it has not received any approaches from prospective suitors. It is believed Minor may consider buying only a stake in Mantra.
Thai companies have a reputation for amassing stakes in businesses, according to market sources, and Minor is understood to have looked at Mantra before, given the scale that it will offer the group. Shares in Mantra have rallied on the recent speculation that at least one party was circling the operation. They closed at $2.84 on Friday.
Hotel expert and Withers law firm partner, Robert Williams, said it was unsurprising that Mantra was attracting attention as a takeover target, given the buoyant industry conditions.
Australia’s largest resort marketer that operates under Peppers and BreakFree brands was bought during the last market boom for $450 million by CVC Capital and UBS, and was floated for close to $500m.
Shares last year traded as high as $5 after being priced at $1.80 for its IPO.
Minor International is one of the largest hospitality and leisure companies in the Asia-Pacific region, operating over 140 hotels and resorts, 1800 restaurants and 307 retail outlets. It operates hotels under brands including Four Seasons, Radisson Blu and Marriott and restaurants under brands including The Coffee Club, Burger King and Dairy Queen.
Elsewhere in the property space, a battle began on Friday for one of Australia’s listed industrial property landlords.
Interests of real estate investor Tony Pitt, who runs 360 Capital, have amassed about 17 per cent of the shares in APN Property’s Industria fund.
But Pitt, advised by Andrew Pridham’s Moelis, is expected to face strong opposition to any bid for the fund by its manager, APN Property. It too has been buying shares, lifting its stake to 21 per cent in the operation.
Just months ago, Centuria took over the majority of Mr Pitt’s property empire, leaving him cashed up and with plenty of fire power to consolidate the smaller end of the listed real estate sector.
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