Specialist property fund manager MFS today announced that it had taken a controlling stake in listed resort and holidays group BreakFree while announcing it’s desire to completely buy out the Gold Coast-based company.
“This is a tremendous opportunity for BreakFree and MFS shareholders to share in the combines strengths of two great companies,” MFS executive chairman Phil Adams said of the merger, which has been accepted by the executive directors of BreakFree.
“However, the maximum benefits of the merger of these two companies will not be realized unless MFS acquires 90 per cent of the BreakFree shares.”.
MFS now owns 50.1 per cent of BreakFree shares, giving it a controlling stake. Those BreakFree shareholders who supported the deal will be issued with three MFS shares for every one BreakFree share held within five working days
MFS, which listed on the Australian Stock Exchange in January announced its intention to merge with BreakFree last month. It is predicted the merged entity will have a market capitalisation of close to $400 million.
MFS has been preparing for the merger by carrying out a business restructure, which included the recent retrenchment of its entire marketing team and the hiring of Challenger’s Steve Kyling to head up its signature Premium Income mortgage fund.
