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
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.
