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Australia: French hotel group Accor offers $1.2 billion for Mantra group

By  |  October 9, 2017

Mantra shares soared more than 16% on Monday after French hotel giant Accor offered to buy the Queensland accommodation group for AU$1.2 billion.

Mantra said that Accor was offering AU$3.96 in cash per share for the company in a deal that would see the country’s two largest hotel operators create a chain of about 300 properties.

Growing visitor numbers from Asia and rising competitive threats from home-sharing networks such as Airbnb are pushing consolidation in the hotel sector.

Gold Coast-based Mantra told the ASX that it would allow Accor to conduct due diligence to determine if the deal can be recommended by the Mantra board. Mantra shares climbed to a 15-month high on Monday, adding 53¢, to close at AU$3.76.

“The discussions are incomplete and … the proposal will be subject to regulatory approvals and other conditions to be determined,” a Mantra spokesman said.

Full Content: Financial Times

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