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Mantra Group Ltd says oui to Accor’s $1.2b takeover bid

Mantra Group Ltd (ASX: MTR) entered into a binding agreement  to sell all its shares to Accor SA (EPA: AC) at  $3.96 on Thursday. The total offer is worth $4.02 per share if a 6 cent final dividend paid in 2017 is included.  

Mantra Group CEO Bob East said shareholders were supportive of the $1.18 billion deal, which will require the consent of 75% of voting shareholders and a majority of shareholders to participate. A vote on the proposed merger will likely be held in March next year, via a scheme of arrangement.

The deal will  create a hotel monolith with more than 300 hotels and more than 50,000 rooms, nearly five times the size of the closest competitor, Choice Hotels International Inc (NYSE: CHH). This will give the group a 15% market share.
Mantra Group shares closed at $3.88 on Thursday. 

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Motley Fool contributor Nivine Bazzi has no financial interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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