Accor SA has bid A$1.18 billion ($920 million) for Mantra Group.
Accor offered A$3.96 ($3.07) a share, or a 23 percent premium to Mantra’s closing price on Friday, according to Reuters.
“Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra board,” the Australian company said in a statement to the ASX.
The companies are currently in discussions and the deal, if it proceeds, is subject to approval from both the Mantra and Accor boards and the Foreign Investment Review Board.
Mantra Group is the operator of the Mantra, Peppers and Breakfree hotel brands, with more than 20,000 rooms across 125 properties in Australia, Hawaii and Indonesia.
Accor operates 4,200 hotels across the world, with brands including Novotel, Mercure, Sofitel and IBIS.
