France's AccorHotels is adding Mantra to its portfolio big-name brands including Ibis, Pullman, Novotel and Sofitel in $1 billion deal.
Paris (AFP) - France’s AccorHotels said Thursday it has reached a deal to buy Australian hotel operator Mantra for 900 million euros ($1 billion), in a move that will strengthen its “long-term grown in the Asia Pacific region”.
The agreement, yet to be approved by Mantra shareholders, will see the Australian operator’s shares sold at AUD$3.96 (2.7 euros, $3.1) each, AccorHotels said in a statement.
“AccorHotels will pay AUD$1.3 billion, equivalent to 0.9 billion” euros, the French hotel giant said.
Mantra put the figure at slightly lower – AUD$1.25 billion, including debt.
The buyout is expected to be completed by the end of the first quarter of 2018, should Mantra’s shareholders agree to it, AccorHotels said.
Mantra Hotels owns 127 resorts, hotels and apartments in Australia, New Zealand, Indonesia and Hawaii, operating more than 20,000 rooms.
The company, which employs 5,500 people, also owns the BreakFree Holidays and Peppers holiday services.
In August Mantra posted half-year profits of AUD$45.6 million, a 22.7 percent jump.
Leading European multinational AccorHotels owns Sofitel, Pullman, Novotel, Mercure and Ibis. It operates 4,200 hotels with over 600,000 rooms.