MFS makes China play
Queensland-based financial services group MFS has moved to further extend its reach, announcing today that it had agreed to acquire a 30 per cent equity stake in a Hong Kong-registered company that operates a financial products distribution business in China.
MFS announced to the Australian Stock Exchange that it had agreed to acquire 30 per cent of FindisNet subject to ongoing due diligence.
Under the terms of the acquisition, MFS will subscribe for shares in FindisNet with payments in stages over the course of 2008 depending on the performance of the business. It said an initial payment of US$5 million had been made, with further payments required subject to positive performance.
MFS head of investment banking Luke Gannon said the acquisition represented an important step in internationalising distribution capacity for MFS’ financial services business in one of the fastest-growing regions in the world.
“We are actively looking at other opportunities in the Asia region with a view to building out our business with appropriately experienced business partners with local knowledge and relationships,” he said. “While we continue to see many opportunities in Australia, we also believe there will be tremendous growth opportunities by accessing distribution opportunities in the wealth management and financial services space in Asia.”
AUTHOR
Mike Taylor
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