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Accor to acquire Mantra
Posted on Thursday, 12 October 2017 12:01
Mantra’s approval of a AUD 1.25 billion (EUR 825.40 million) bid from Accor paves the way for Europe’s largest hotelier by room numbers to expand its footprint in its biggest revenue-generating operating region.
At AUD 3.96 per share, the takeover not only implies a market capitalisation of AUD 1.18 billion but also a multiple of 23.7x underlying forward price to earnings for the year ended 30th June 2017.
It equates to 12.4x underlying enterprise value to earnings before interest, tax, depreciation and amortisation for FY 2017 and includes the assumption of AUD 72.40 million of net debt, as at the end of June.
For a premium of 22.6 per cent to the unaffected trading price on 6th October, Accor will be gaining control of a company billed as one of Australia’s largest hotel and resort operators.
Mantra has 127 properties and over 20,000 rooms in properties ranging from luxury accommodation and coastal sites to serviced apartments in cities and leisure destinations across Australia, New Zealand, Indonesia and Hawaii.
The acquisition of the hotelier, which operates under the three key brands Peppers, Mantra and BreakFree, is roughly 11.5 times earnings and would give Accor a dominant position in some Queensland markets, the Australian reported.
Macquarie analyst Shaun Weick said in a note cited by the Financial Times that international operators are attracted to Australia given its appeal as a travel destination, especially from China.
According to the Australia China Business Council, the volume of Chinese tourists visiting the country is set to more than triple to 3.30 million per year by 2026.
Zephyr, the M&A database published by Bureau van Dijk, shows the deal would be the second-largest on record in Australia’s hotel sector.
It would also be the country’s largest inbound acquisition by a French company, according to Zephyr.
© Zephus Ltd