MFS sells 65 per cent of Stella
MFS Limited has succeeded in gaining some liquidity, announcing today that it has entered into binding agreements for the sale of 65 per cent of the Stella Group to funds advised by CVC Asia Pacific.
Under the terms of the transaction, MFS will receive cash proceeds of just over $409 million and will retain a 35 per cent shareholding and economic interest in Stella.
It said it would equity account its interest in Stella following completion and would no longer consolidate approximately $905 million of Stella debt.
The transaction is subject to foreign regulatory approvals in Australia and New Zealand but it is not subject to shareholder approval.
MFS said it had retained external advisers to assist in undertaking and completing a strategic review of its financial services business, including a review of its operating and financing structure.
It said that until this review was completed the board had requested the ASX continue the voluntary suspension of MFS securities.
AUTHOR
Mike Taylor
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