New chief, new deal, new Octaviar for ScottMonday, May 12, 2008...

New chief, new deal, new Octaviar for Scott
Monday, May 12, 2008



Since former Liberal Party leader, Andrew Peacock, quit his chairmanship of financially struggling Octaviar, the boardroom takeover by Singapore-based Chris Scott has been swift and efficient.

It has been only two months since Mr Scott has started establishing himself upon the Octaviar (formerly known as MFS) board, replacing former chief executive Craig White only five days after his resignation.

The new chief, Craig Chapman, is known to be one of Mr Scott’s close associates, according to Business Day.

The elusive businessman has also outlined plans to sell the investment management arm of the corporation to Wellington Capital, an investment firm with evident links to Mr Scott.

The takeover of Mr Scott was further aided by the new ‘independent’ chairman Paul Manka, and new board-member Jenny Hutson, who also happens to be the managing director of Wellington Capital.

Mr Manka noted that “The board has recognised that it is not in the best interests of creditors, shareholders and other company stakeholders for Octaviar IM to remain a wholly owned subsidiary.”

Ms Hutson has forecasted a final purchase price to be ‘north of $20 million,’ which is a depressing prospect following the value of Octaviar at $1.33 billion when rival City Pacific proposed a merger in January.

The transaction with Wellington is completely legitimate, according to Ms Hutson, and will merely allow Wellington to earn management fees from the funds.

She also claimed her intention was to pursue the $50 million debt from Octaviar, and the $67 million owed by MFS Living and Leisure to the Premium Income Fund.

Ms Hutson made no excuses, recognising that “Our interests are quite different to the people in the Octaviar group.”

In 2006, Mr Scott inherited a large shareholding in Octaviar through the sale of his listed leisure business S8.

The coup may be complete, but Ms Hutson still claims that there is nothing untoward in the recent changes to Octaviar. She noted that Mr Scott was no longer a director, nor a shareholder, of Wellington Capital.