TD breaking news – Mantra confirms AccorHotels acquisition

TD breaking news – Mantra confirms AccorHotels acquisition

Mantra board unanimously recommends AccorHotels scheme of arrangement. 

Mantra Group Limited has just announced it has entered into a binding agreement with AccorHotels which will see the French hospitality giant acquire all of the shares of Mantra at a price of $3.96 per share.

A Scheme Implementation Agreement has been signed to give effect to the transaction, which represents an implied market capitalisation for Mantra Group of $1.182 billion.

In addition Mantra will have the discretion to pay shareholders a special dividend of up to 23.5c per share, which will be deducted from the $3.96 headline value. The size of this dividend will be determined by the Mantra Board taking into account a range of factors including the availability of franking credits.

Mantra’s directors have unanimously recommended that shareholders vote in favour of the scheme, in the absence of a superior proposal. They said the offer represents a significant premium on the previous share price, offers an attractive multiple and provides certainty for shareholders.

Mantra has appointed an Independent Expert to determine whether the Scheme is in the best interests of Mantra shareholders.

Mantra chairman Peter Bush said the AccorHotels offer “recognises the strategic value of our business and our success in becoming a leading accommodation provider.

“AccorHotels has a global capability and deep skills that will benefit Mantra’s customers and provide opportunities for our team members,” he added.

Shareholders will be given the opportunity to vote on the scheme at a meeting expected to be held in the first quarter of next year, with the deal scheduled to be finalised by 31 March 2018.

More details in today’s issue of Travel Daily.

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Source: traveldaily