Gold Coast-based Mantra Group – Australia’s largest hotel and resort operator – could be bought out in a $1.2 billion takeover deal by French hotel company Accor.
Mantra Group has over 125 properties across Australia, New Zealand, Indonesia and Hawaii which owns and operates under the Mantra, Peppers and Breakfree brands. Last year it’s net profit, after tax, was $47.2 million.
Earlier this week Mantra released a statement to the Australian Stock Exchange confirming it had “received an indicative and non-binding proposal from Accor in relation to a potential control transaction to be implemented by way of a Mantra scheme of arrangement”.
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At the time of the announcement, Mantra shares were trading at around $3.22, but shares in the company immediately jumped to $3.73. Meantime, Accor is offering $3.96 for every Mantra share, in cash.
If the proposed takeover is accepted by Mantra Group, the deal will still subject to regulatory approval.