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
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
