AccorHotels has agreed to buy Australian hotel operator Mantra Group for A$1.3bn (£770m).
Under the terms of the agreement, AccorHotels will offer A$3.96 for each Mantra share, including any potential special dividend – a 23% premium to the A$3.23 closing price on 6 October.
Mantra has 127 properties and more than 20,000 rooms in hotels, resorts and serviced apartments in Australia, New Zealand, Indonesia and Hawaii.
AccorHotels said the combined geographic footprint would form a “favourable base” for the company’s future growth in the region.
Sébastien Bazin, chairman and chief executive of AccorHotels, said: “This operation will underpin our long-term growth in the Asia Pacific region.
“Mantra’s portfolio would offer AccorHotels additional accommodation formats and a strong customer base to complement our successful hotel portfolio in Australia.”
The deal is subject to regulatory approval and is expected to complete at the end of Q1 2018.
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