Accor hotel offers $930mn for Mantra

2nd lead_ Accor Hotels copy

Bloomberg

Accor SA, Europe’s biggest hotel operator, offered to buy Australia’s Mantra Group Ltd. in a deal valuing the hotel and resort company at $930 million.
The French company offered A$3.96 per share in cash for Mantra and was given access to its books, the target said in a statement on Monday. Mantra shares jumped by a record 18 percent to A$3.81 in Sydney.
The deal would be Accor’s biggest acquisition in the Asia-Pacific region, giving it more than 20,000 rooms across Australia, New Zealand and Indonesia and access to a growing tourism market. A Mantra purchase would advance Accor’s efforts to add properties in the mid- and upscale markets, especially in the Asia-Pacific region, according to Bloomberg Intelligenceanalyst Margaret Huang.
“The region already generates around 20 percent of total revenue and is supported by growing Chinese travel demand,” she said.
The number of international visitors to Australia is forecast to increase 13 percent to 9.2 million in the year through June 2018, and climb to 15 million within a decade, according to a government report. Accor expects to raise more than $4.7 billion from the sale of a stake in its HotelInvest property unit, a deal that may take place by the end of autumn, CEO Sebastien Bazin said in June.

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