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Fri, 13 Oct 2017

AccorHotels to Acquire Australia’s Mantra Group

AccorHotels has signed an agreement with Mantra Group with the view to acquire all of the issued capital in Mantra by way of a scheme of arrangement to be approved by Mantra shareholders.

 Under the terms of the agreement AccorHotels would offer AUD3.96 in cash for each Mantra share including any potential special dividend.

Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said, “We are delighted to have come to an agreement to acquire the Mantra Group. 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.”

Swimming pool at Mantra Club Croc in Airlie Beach, Whitsundays.. Click to enlarge.

Mantra is one of Australia’s largest hotel and resort marketers and operators with 127 properties and over 20,000 rooms in hotels, resorts and serviced apartments across Australia, New Zealand, Indonesia and Hawaii.

Properties in Mantra’s portfolio range from luxury accommodation and coastal resorts to serviced apartments in city and key leisure destinations, under three key brands: Peppers (28 properties), Mantra (75 properties) and BreakFree (24 properties).

 Mantra also manages core accommodation services including guest relations and reception areas, restaurants and bars, conference and function centres, pool and entertainment facilities and offices. Mantra has more than 5,500 employees.

Chairman of Mantra, Peter Bush, said, “The AccorHotels offer represents an attractive proposition for Mantra and for our shareholders and the Board unanimously recommends AccorHotels’ proposal. AccorHotels is one of the world’s leading hotel operators and we trust that our business will be in good hands. 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.”

The offer price represents:

- A 23% premium to the last close price of AUD3.23 as at 6 October 2017

- An implied EV / 2018e EBITDA (including transaction costs) multiple of 12.4x pre-synergies and high single-digit post-synergies.

The acquisition will be accretive to earnings per share in the first year of ownership pre-synergies. AccorHotels will pay AUD1.3 billion, equivalent to €0.9billion.

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.

See other recent news regarding: AccorHotels, Mantra.

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