wellington capital limited news, page-44

The financier formerly known as MFS:



Apr, 2008



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With a fresh board and a new name, the embattled former MFS is concentrating on life after death as Octaviar.

THE appointment of S8 founder Chris Scott to the board of MFS has been hailed a positive move despite causing initial friction with company chairman Andrew Peacock.

Peacock had earlier denounced any motion to appoint Scott but capitulated provided he abandon a proposed April 7 EGM.

Scott’s advisor, the former S8 chairwoman Jenny Hutson, had earlier called on Peacock to accept responsibility for the company and now believes the two can work together following a restructure of the company under its new banner Octaviar.

Hutson, the founder and managing director of Wellington Capital, remains confident that the current board can find some adhesion. She says it was a sensible business decision to change the name from MFS to Octaviar following the injection of a considerable undisclosed sum by the US-based Massachusetts Financial Services supporting the move. The settlement involves a cash payment to MFS provided the name of the company was changed by the end of last month.

“Andrew Peacock and I have had a series of discussions and we have a shared view that there is a need for unity within the board,” she says.

“There are big challenges ahead but the board of seven (Andrew Peacock, Chris Scott, Barry Cronin, Geoff Williams, Paul Manka, David Bourke, Craig Chapman) are committed to the time and energy required to getting back on track.”

Hutson says the much publicised acrimonious rift between Peacock and Scott had now been resolved.

“It’s a big call given the current context, but a bridge has been built and we have been persuaded that they can work together,” she says.

“They are two very different characters with individual strengths but if they can work together, we will see an amazing combination.”

Scott meanwhile is scheduled to appear in the Southport Magistrates Court in August in relation to charges relating to commissions deducted at S8 apartments. If found guilty, Stella could be liable to pay $44 million in fines while Scott could face a two-year jail term.

Key developments at a glance

Stella Sale
On February 29 MFS sold 65 per cent of Stella Group to funds advised by CVC Asia Pacific for $409.2 million. MFS has already received $406 million, with a further $3.2 million relating to reimbursement of costs to be received within 12 months.

Park Hyatt
MFS settled on the $201.6 million sale of Sydney's five-star Park Hyatt Hotel held in a trust managed by an entity in the MFS Group. The price was a record for a single hotel asset and represented a price of $1.276 million per room for the 158-room hotel. MFS received $5.16 million in performance fees and the sale resulted in a 50 per cent increase in returns to investors in the PH Sydney Hotel Trust.

http://www.goldcoastbusinessnews.com.au/process/myviews/gcbn_article.html?articleId=960