MFS confirms separation
MFS has confirmed its intention to separate its financial services and tourism groups and list them separately on the Australian Stock Exchange.
After seeking a trading halt on the ASX earlier this week, MFS today announced that the Stella Group and MFS Financial Services business would become standalone entities.
It said it expected the separation would be achieved via a scheme of arrangement subject to both MFS shareholder and court approval in the second quarter of this year.
The announcement said that in conjunction with the separation, both Stella and MFS Financial Services would be recapitalised to reduce indebtedness and to achieve capital structures that are appropriate to the different market and capital requirements of the respective businesses.
The decision to separate the businesses followed a move by City Pacific to acquire the MFS Financial Services business.
AUTHOR
Mike Taylor
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