Financial institutions Macquarie Group Ltd. and Credit Suisse Group AG each became substantial shareholders of Mantra Group Ltd. after they bought millions of shares in the Australian target of AccorHotels' A$1.18 billion takeover play, The Australian Financial Review reported.
Macquarie purchased approximately eight million shares in Mantra to amass a 5.2% shareholding, while Credit Suisse bought 9.5 million shares to own a nearly 8% stake, becoming the biggest shareholder in the Australian hotel and resorts operator. According to the paper, both stake transactions were conducted Feb. 27 at a price of about A$3.87 per share, below the value of Accor's A$3.96-per-share offer, an indication they expected the merger to definitively take place.
The March 6 report also noted that the Australian Competition and Consumer Commission's delayed decision on the proposed merger will be released later in the business week ending March 9. Even with the watchdog's approval, the merging parties still need the green light from shareholders and other regulatory bodies in order for the deal to push through.
Once completed, the billion-dollar agreement will create a hospitality entity that will control about a dozen brands with 53,000 rooms across 370 hotels, the publication added.
