mfs reviews its fin services business

Article from Investor Daily....

Regarding the comment 'MFS would not comment on the review being part of its plans to ready its financial services business for a possible buyer', surely this is the natural progression now? Oh and RogueTrader what was the gist of your last post before it was moderated?! Most of us missed it!


MFS reviews its fin services business

Listed funds management group MFS has hired an external adviser to conduct a strategic review of its financial services business.

According to an MFS spokesperson, the review is being conducted by boutique advisory practice 333 Capital.

MFS would not comment on the review being part of its plans to ready its financial services business for a possible buyer.

"Until the strategic review is completed there will be no comment," an MFS spokesperson said.

It is understood that 333 Capital has been working with MFS for the last few weeks.

In a statement to the Australian Securities Exchange, the MFS board requested that the all MFS securities remain voluntarily suspended until the review was completed.

News of the review followed the group's announcement yesterday that it had entered into a binding agreement to sell off a 65 per cent shareholding in its Stella property group (Stella) to funds advised by private equity firm CVC Asia Pacific.

Under the terms of the deal, MFS will receive cash proceeds of just over $409 million and will retain a 35 per cent shareholding and financial interest in Stella.

The group will also equity account its interest in Stella following the deal's completion and will no longer consolidate about $905 million of its debt.

Late last month MFS announced it had decided against separating its Stella tourism group from its financial services business.

Less than a week after the announcement MFS chief executive Michael King handed in his notice.

King left following a slump in the company's share price on January 18 and the withdrawal of a merger offer from Brisbane-based asset manager City Pacific.

Deputy chief executive Craig White was immediately appointed MFS' new chief executive following King's resignation.