The ACCC has officially approved the acquisition of Mantra Group by AccorHotels overnight.
A release posted on the ASX stated AccorHotels was pleased with the ACCC’s decision.
The statement said:
“Mantra Group Limited notes the ACCC’s decision and is pleased to be able to progress the proposed transaction with AccorHotels to a vote of Mantra’s shareholders.”
As well as this, the statement addressed a potential date for the shareholders to make an agreement cited for May 2018.
The release said: “Subject to customary conditions including the approval of Mantra’s shareholders, approval from the Federal Court of Australia as well as Australia’s Foreign Investment Review Board, the ‘scheme booklet’ (a shareholder document) is expected to be implemented May 2018.”
“Mantra is looking forward to working with AccorHotels to deliver an enhanced offering for our loyal guests, providing them with exciting new offers and access to an international network.”
AccorHotels’ potential acquisition of Mantra was originally announced in October of last year.
At the time, the agreement 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.
“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.
Mantra recently released its half-yearly results, which revealed the group’s revenue was up by $10m.
The Group saw record revenue and massive increases in room bookings, with an increase in revenue of $10.1m and 1.97m rooms sold.
Revenue grew to $366.2m, an increase of 2.8 per cent, mainly due to growth in domestic and international travel, as well as record RevPAR (Revenue Per Available Room) of $145.07.
The number of rooms sold in the first half of the financial year was the highest ever for the period, and the Group increased available rooms by 2.6 per cent.