City Pacific bids for MFS
Financial services group City Pacific Limited has made a conditional offer to acquire MFS.
City Pacific has told the Australian Stock Exchange that the conditional proposal involves acquisition of the MFS business excluding the Stella Tourism Group.
It said the board of MFS had advised that it would evaluate the proposal because it agreed that a merger of the two financial services businesses would produce substantial synergies and revenue enhancement opportunities.
The ASX announcement said the proposed transaction was subject to the completion of satisfactory mutual due diligence, final approval of the boards and shareholders and certain rulings and clearances including from the Australian Taxation Office.
It said that subject to due diligence the proposed transaction would involve the issue of 225 million new City Pacific shares in consideration of the acquisition of MFS’ financial services businesses.
AUTHOR
Mike Taylor
Recommended for you
The month of April enjoyed four back-to-back weeks of growth in financial adviser numbers, with this past week seeing a net rise of five.
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With the election taking place on Saturday (3 May), Adviser Ratings examines how the two major parties could shape the advice industry in the future.
