Mantra Group has just informed the Australian Securities Exchange (ASX) that it has received an indicative and non-binding proposal from AccorHotels to acquire the company for AUD$3.96 per share.
The announcement comes as speculation grew of an imminent take-over, with several other chains, including Marriott International, also mentioned as possible buyers by mainstream Australian and international media.
The move would see AccorHotels add over 120 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.
Mantra says it has granted AccorHotels “access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra Board”.
“The discussions are incomplete and any entry by the parties into binding transaction documents remains subject to a number of conditions, including (without limitation) the approval of both the Mantra and Accor Boards and agreement on documentation,” Mantra says.
“If any proposal is agreed, the Proposal will be subject to regulatory approvals and other conditions to be determined.
“There is no certainty that an agreement will be reached or that the Proposal will be implemented,” Mantra says.
Mantra Group, led by CEO Bob East, has over 20,000-plus rooms in over 125 properties under management for owners in properties across Australia, New Zealand, Indonesia and the United States (Hawaii).
Mantra Group has a team of approximately 5500-plus team members who carry out its core functions including operations, sales marketing and distribution, portfolio and asset management, information technology and corporate activities.
When contacted by HM, AccorHotels declined to comment.