Mantra Group has advised the Foreign Investment Review Board (FIRB) approved AccorHotels acquisition of the company.
In a statement released by the ASX, Mantra announced the Australian federal treasurer had issued a statement of ‘no objection’ under the Foreign Acquisitions and Takeovers Act, pushing the acquisition one step closer to completion.
The arrangement is still subject to the satisfaction of customary conditions, which includes the approval of Mantra’s shareholders and approval from the Federal Court of Australia.
Mantra shareholders will hold a vote in May this year and if all goes to plan, the acquisition is set to be implemented also in May.
The acquisition agreement, originally announced in October last year, stipulated AccorHotels would offer AU$3.96 in cash for each Mantra share including any potential special dividend.
The offer price represents a 23 per cent premium to the last close price of AU$3.23 as at 6 October 2017.
AccorHotels and Mantra’s combined geographic footprint, together with enhanced distribution and systems, would form a favourable base for AccorHotels to expand further in the APAC region, something reiterated by Chairman and CEO of AccorHotels, Sébastien Bazin earlier this month.
We are delighted to have come to an agreement to acquire the Mantra Group,” Bazin 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”.
The news followed a spate of acquisitions and mergers in the industry over the past 12 months, where Flight Centre alone acquired upwards of five travel businesses.