Mantra takeover by Accor moves closer with FIRB approval
Written on the 20 March 2018 by Ben Hall
THE $1.2 billion sale of Mantra Group (ASX: MTR) to Accor Hotels has been approved by the Foreign Investment Review Board (FIRB) and could be finalised as early as May.
The FIRB issued a statement of "no objection" under the Foreign Acquisitions and Takeovers Act for the transaction in which French giant AccorHotels will acquire 100 per cent of Mantra.
It means the deal only needs the approval of Mantra's shareholders along with a green light fro the Federal Court of Australia.
"Mantra expects to distribute its Scheme Booklet to shareholders in April 2018, with a vote of Mantra shareholders to be held in May 2018," Mantra says in an ASX statement released on Tuesday morning.
"Subject to the satisfaction of all outstanding conditions the scheme is expected to be implemented in May 2018."
Earlier this month, the competition watchdog gave the green light for the proposed acquisition of Mantra by Accor. The French company made its bid for Mantra last October, which was unanimously accepted by the Mantra board.
Accor's business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantra's focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
Accor is part of one of the world's largest hotel and tourism groups, AccorHotels. AccorHotels is listed on the French Stock Exchange. In Australia, Accor has a network of over 200 hotels and offers a range of short-term accommodation options.
Mantra is Australia's second largest accommodation provider and operates 136 properties with more than 24,000 rooms across Australia, New Zealand, Indonesia and Hawaii.
Both Accor and Mantra also supply hotel management and related services to property owners and developers.
Business News Australia
Author: Ben Hall