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CVC’s Mantra hotel sale attracts bids from Archer, CHAMP

8 May 2012

CVC’s sale of Mantra Hotels has attracted interest from Aussie private equity firms Archer Capital and CHAMP, an A$520m ($528m) exit that comes ahead of the buyout major’s imminent withdrawal from Australia following crippling losses from its investment in debt-stricken broadcast giant Nine Entertainment.

The sale process is also said to have received interest from French hotelier Accor. Bids for the business closed yesterday and UBS is understood to be running the sale, The Australian reported on Thursday.

The winning bidder will take control of 105 serviced apartments, hotels and resorts held by the Mantra group or leased from private investors, the report added.

CVC Capital Partners took the recent decision to withdraw from Australia following large losses incurred from its third Asia fund and a lack of debt financing to support deals.

The firm has ceased doing new deals and is cutting its Australian employee base following huge losses incurred from its investment in beleaguered media company Nine Entertainment, which could result in losses of over $2bn.

Three partners – equivalent to half of the firm’s dealmaking team in Australia – left CVC to work for other financial services businesses in December, soon after the firm told them it would not be making any future investments.

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