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Australia's Mantra Agrees To Be Bought By Accor For A$3.96/share In Cash

Mantra Group Limited, an Australia-based provider of accommodation and hotel related services announced Thursday that it has entered into a binding agreement with French hotel group Accor (ACRFY.PK,ACRFF.PK), whereby AccorHotels will acquire Mantra at a price of A$3.961 cash per share, including a potential special dividend.

The deal will be through a scheme of arrangement. The cash consideration represents an implied market capitalisation of A$1.18 billion and an implied enterprise value of A$1.255 billion for the year ended June 30,2017.

In addition, Mantra will have the discretion to pay shareholders a special dividend of up to a maximum of 23.5 cents per share which will be deducted from the A$3.96 headline value.

It was on October 9 that Mantra Group confirmed that it has received an indicative acquisition proposal from Accor.

The cash consideration represents an attractive premium of 22.6% over the previous closing price of Mantra shares on October 6, the last trading day prior to confirmation that Mantra received an indicative and nonbinding proposal from AccorHotels.

It also represents a premium of 29.2% over the 30 day volume weighted average price of Mantra shares up to and including October 6.

Mantra said its Board has unanimously recommended that Mantra shareholders vote in favour of the Scheme, and intend to vote Mantra shares in their control in favour of the Scheme, in the absence of a superior proposal.

Mantra's Chairman, Mr Peter Bush said, "Mantra's Board has concluded that the sale of the Company at a significant premium to market is an attractive outcome for shareholders. After careful consideration, the Board believes that the offer price of A$3.96 cash per share recognises the strategic value of our business and our success in becoming a leading accommodation provider."

Mantra shareholders will be given the opportunity to vote on the Scheme at a Scheme Meeting expected to be held in March 2018. Subject to the conditions of the Scheme being satisfied, the Scheme is expected to be implemented by the end of March 2018.

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