Home' Hotel Management : HM December 2017 Contents “ We are delighted to have come to an
agreement to acquire the Mantra Group,” he said.
“This operation will underpin our long-term growth
in the Asia Pacific region.
“Mantra’s portfolio would offer AccorHotels
additional accommodation formats and a strong
customer base to complement our successful hotel
portfolio in Australia.
“ We are confident that the transaction terms are
attractive for shareholders of both groups,” Bazin said.
Properties in Mantra’s portfolio range from
luxury accommodations and coastal resorts
to serviced apartments in city and key leisure
destinations, under three key brands: Peppers (28
properties), Mantra (75 properties) and BreakFree
Mantra, which has over 5,500 employees, also
manages core accommodation services including
guest relations and reception areas, restaurants and
bars, conference and function centres, pool and
entertainment facilities and offices.
“The AccorHotels offer represents an attractive
proposition for Mantra and for our shareholders
and the Board unanimously recommends
AccorHotels’ proposal,” Mantra Group Chairman,
Peter Bush, said.
“AccorHotels is one of the world’s leading hotel
operators and we trust that our business will be in
“Mantra’s strong expertise in apartments, in
particular, and our presence in resort locations
are very complementary to the AccorHotels
operations in Australia and New Zealand.
“The combined business will be an important
part of Australia’s strong and growing tourism
market and its customers will benefit from the
market leading expertise of both groups,” Bush said.
AccorHotels says its combined geographic footprint
with Mantra, together with enhanced distribution
and systems, would form a favourable base from
which AccorHotels can expand further in the region.
“Mantra’s expertise in apartment management,
in particular, will offer a new opportunity for
growth,” AccorHotels says.
The acquisition will be accretive to earnings per
share in the first year of ownership pre-synergies.
AccorHotels will pay AUD$1.3 billion.
“Besides, AccorHotels confirms it is in discussion
with potentiall investors in relation to the sale
of part of the Share Capital of AccorInvest,”
AccorHotels says. “The Group aims at signing an
agreement before year-end 2017. At this stage, the
Group has no certainty to reach an agreement.”
The transaction is subject to regulatory approvals,
including from the Australian Foreign Investment
Review Board, the Federal Court of Australia
and the Australian Competition and Consumer
Commission, as well as the approval of Mantra
shareholders and other customary conditions.
It is anticipated that subject to regulatory and
shareholder approvals, the transaction should be
completed by the end of the first quarter 2018.
AccorHotels is not only acquiring some of Australia’s top
properties but also some of the most talented staff in the industry
Delighted: AccorHotels Chairman
and CEO, Sébastien Bazin
Mantra Group’s board has approved a proposal
from AccorHotels to acquire the company for over
The deal, which will see all shares of Mantra
acquired for AUD$3.96 per share, will see
AccorHotels add 127 hotels to its network across
Australia, New Zealand, Indonesia and the United
States (Hawaii), taking its network to over 370
hotels in the Australasia region.
“The Board of Directors of Mantra Group
Limited is pleased to announce it has entered into
a binding agreement with Accor S.A whereby
AccorHotels will acquire all of the shares of Mantra
at a price of AUD$3.96 cash per share (on a fully
diluted basis), including a potential share dividend,
by way of a scheme of arrangement,” Mantra
Group said in a statement.
“The Directors of Mantra unanimously
recommend that Mantra shareholders vote in favour
of the Scheme, and intend to vote Mantra shares in
their control in favour of the Scheme, in each case in
the absence of a superior proposal and subject to an
Independent Expert concluding that the Scheme is
in the best interest of Mantra shareholders.
“The Scheme is also subject to certain
regulatory approvals being met,” the Board said.
The acquisition of Mantra Group continues
AccorHotels’ aggressive global expansion which
recently saw the company buy Fairmont Raffles to
create the world’s largest network of luxury hotels.
AccorHotels Chairman and CEO, Sébastien
Bazin, said the company was thrilled with the
acquisition of Australia’s second largest hotel chain.
8 HM The Business of Accommodation
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