Mantra Group (MTR) joined Myer (MYR) on the maybe takeover list yesterday after it issued a statement denying market talk that it was talking to potential suitors.
Mantra shares surged to close up 12.2% at $2.93% – not as much as Myer’s mad 18% leap on Monday.
The accomodation company said in a brief statement on Tuesday that it had noted the share price activity but adding that “whilst it is Mantra’s policy not to comment on rumour or media speculation, Mantra confirms that it is not in discussions with any potential buyers”.
"Mantra is aware of and will update the market in accordance with its continuous disclosure obligations," the statement said.
The shares were the stock market’s biggest gainer on Tuesday, surging 9% thanks to the takeover speculation.
It closed up 10.7% cents at $2.84 on Tuesday for a market value of more $1 billion, more than double the October 2014 float.
A range of names, including the Hyatt and InterContinental Hotel groups, have been touted in the market as possible suitors.
Mantra operates the Peppers, Mantra and Breakfree brands, with more than 125 properties across Australia, New Zealand, Bali and Hawaii through its management deal with the Outrigger chain. Mantra also bought the Ala Moana hotel in Honolulu in July 2016 for $US52.5 million.
In the half year to December 2016, Mantra reported revenue of $356.2 million, up 16% on the first half of 2015-16.
Its new hotel at Sydney Airport is scheduled to be ready in July, with Mantra Macarthur Hotel, Canberra and the first two (of three) towers of Brisbane’s luxurious FV by Peppers due to open in August.
