MANTRA'S MAJOR INVESTORS BANK ANOTHER $91M FROM SELLDOWN

Written on the 16 April 2015 by Nick Nichols

MANTRA'S MAJOR INVESTORS BANK ANOTHER $91M FROM SELLDOWN

THE major shareholders of Mantra Group (ASX:MTR) have taken the chance to sell down even more of their interest in the company after a solid run on the company's shares since listing last June.

Private equity group CVC Asia Pacific, which holds its stake in Mantra through EV Hospitality NV, and UBS Australia Holdings this week sold down 25 per cent of the shares held in voluntary escrow for more than $91 million.

This comes on top of the $239 million the partners received last June when they floated the Surfers Paradise-based accommodation group on the ASX.  A further $5.4 million was paid to them in interim dividends on March 31.

It's no secret that both partners are looking to finally exit their investment after snaring Mantra from the financial ruins of former Gold Coast listed funds manager MFS.

There is no indication when CVC and UBS intend to sell down their entire stake in the company, but all shares held in escrow are allowed to be sold once Mantra announces its full-year results for FY15 to the ASX in August.

Under the terms of the share offer last year, CVC and UBS were permitted to sell 25 per cent of the escrow shares 10 business days after Mantra released its interim profit results for FY 15 and once Mantra's shares were trading 20 per cent above their offer price.

Both conditions were met some time ago and the pace of growth in Mantra's share price could be a reason for the founding shareholders to possibly stay on the register a little longer.

Mantra Group's market value has risen about 88 per cent since June when their shares listed at a small premium to their $1.80 issue price.

CVC and UBS this week sold 27 million shares at $3.38 each, receiving $91.2 million from a range of investors. The shares were released from escrow on April 15.

"Mantra understands that the sale was well supported by both existing and new high quality shareholders," says company secretary Fiona van Wyk in a statement to the ASX.

The partners had 108 million shares held in voluntary escrow and, with the remaining 81 million shares now hold about 30.4 per cent of Mantra Group. CVC holds 20.4 per cent, while UBS has 10.05 per cent.

Mantra Group management, which includes CEO Bob East, still retain a 3.34 per cent stake of about 8.6 million shares which are worth about $29 million.

Mantra posted a net profit of $21.8 million for the half year to the end of December, up from a $1.6 million loss a year earlier. Revenue rose 9.4 per cent to $252.7 million and Mantra has reaffirmed its prospectus forecast of a $32.6 million profit for the current financial year.

The company this year added to its portfolio through the acquisition of four properties from Outrigger Hotels & Resorts Australia, including Twin Towns Resort and the Outrigger Surfers Paradise.


Author: Nick Nichols

Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter