Mantra Group's (ASX: MTR) proposed takeover by French accommodation giant Accor has been given the green light by the Federal Court and its shares have been suspended, effectively ending the company's "life" as an ASX-listed company.
The Federal Court orders have been lodged with the Australian Securities and Investments Commission (ASIC) and is the final regulatory step before Accor acquires all of the shares in Mantra which is expected to be completed on Thursday May 31 with delisting to take place on June 1.
The $1.2 billion sale was approved by 96 per cent of shareholders earlier this week and is expected to create an accommodation giant with around 15 per cent of the Australian market share including 370 hotels with more than 50,000 rooms.
The deal had already been given approval by the Foreign Investment Review Board (FIRB) and the competition watchdog, the ACCC, before the shareholders and the Federal Court gave it the green light.
The French company made its bid for Mantra last October, which was unanimously accepted by the Mantra board.
Accor's business is mainly focused on hotel-style accommodation and its brands include Sofitel, Novotel, Mercure and ibis. Mantra's focus is on serviced apartments, which it offers through its Peppers, Art Series, Mantra and Breakfree brands.
Accor is part of one of the world's largest hotel and tourism groups, AccorHotels which is listed on the French Stock Exchange. In Australia, Accor has a network of over 200 hotels and offers a range of short-term accommodation options.
Mantra is Australia's second largest accommodation provider and operates 136 properties with more than 24,000 rooms across Australia, New Zealand, Indonesia and Hawaii.
Both Accor and Mantra also supply hotel management and related services to property owners and developers.
Business News Australia
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support