The Mantra Group has confirmed that it has received an acquisition proposal from hotel giant, AccorHotels, but stressed a buyout is still up in the air.
Addressing recent media speculations, Mantra revealed that AccorHotels has submitted a “non-binding proposal” to buy the business at $3.96 per share, which would equal roughly $1.2 billion, ABC News reported.
In an online statement, Mantra said while discussions are “incomplete”, it has granted the hotelier access to due diligence in order to determine whether an agreement can be reached.
“Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra Board.”
Mantra Group
Mantra continued, stressing that there is “no certainty that an agreement will be reached”, however, if a transaction is implemented it would be subject to a number of conditions including board and regulatory approval.
“Mantra will keep investors informed in accordance with its continuous disclosure obligations,” the group added.
“At this stage shareholders do not need to take any action in relation to the Proposal.”
As part of a group-wide acquisition, AccorHotels would likely take control of Mantra’s 125 properties under three brands – Mantra, Peppers and Breakfree.
Accor could also potentially be the new owners of the Art Series Hotel Group, which was purchased by Mantra in August this year.
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