NEW SUITOR EMERGES AS MANTRA GROUP RUMOUR MILL CONTINUES

NEW SUITOR EMERGES AS MANTRA GROUP RUMOUR MILL CONTINUES

MANTRA Group (ASX: MTR), the subject of several takeover rumours, has reportedly attracted another suitor in the form of Thai group Minor International.

Minor International owns restaurant and café chains including the Coffee Club, and The Australian reports it may be interested in buying a stake in Mantra.

It becomes the latest big-name company linked to the Gold Coast-based hotel group along with other potential buyers in the Marriott Group, the InterContinental Hotel and Hyatt groups, and Chinese hotel operators HNA and the Nanshan Group.

Australia's largest resort marketer, which operates the Mantra, Peppers and Breakfree brands, has previously denied that it is in discussions with any potential buyers.

Since the rumour mill began churning out a list of potential buyers last month, MTR shares have surged from $2.59 to $2.88 at around midday on Monday.

Minor International is one of the largest hospitality and leisure companies in the Asia Pacific region with more than 150 hotels and resorts, 1,900 restaurants and 300 retail trading outlets.

UBS and CVC floated Mantra at $1.80 in June 2014 and in December 2015 its shares hit a high of $5.06.

Since then it has lost around 40 percent of its value despite solid results and this is fuelling the speculation that it is being seen as a good value acquisition by Australian and Asian-based interests.

Business News Australia

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