Mantra shares soared more than 16% on Monday after French hotel giant Accor offered to buy the Queensland accommodation group for AU$1.2 billion.
Mantra said that Accor was offering AU$3.96 in cash per share for the company in a deal that would see the country’s two largest hotel operators create a chain of about 300 properties.
Growing visitor numbers from Asia and rising competitive threats from home-sharing networks such as Airbnb are pushing consolidation in the hotel sector.
Gold Coast-based Mantra told the ASX that it would allow Accor to conduct due diligence to determine if the deal can be recommended by the Mantra board. Mantra shares climbed to a 15-month high on Monday, adding 53¢, to close at AU$3.76.
“The discussions are incomplete and … the proposal will be subject to regulatory approvals and other conditions to be determined,” a Mantra spokesman said.
Full Content: Financial Times
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