MFS sells majority of NZ operation
MFS has announced plans to offload 60 per cent of its New Zealand operations to a group of Australian and New Zealand investors that includes a subsidiary of global investment and advisory firm Babcock & Brown (BNB).
The sale has been arranged with a view to grow MFS’ New Zealand arm so it becomes a significant presence in the country’s financial services sector.
The new ownership group believes impending changes to the financial services legislative landscape in New Zealand will provide an opportunity for the operation to grow rapidly in the near future.
The purchase of the 60 per cent share is set to be completed before the end of this month.
MFS will retain a 40 per cent stake in the business, under the new ownership structure and will continue to manage the operation.
However, the financial reporting treatment will change, with the New Zealand arms results no longer consolidated into MFS’ statutory accounts.
In other news, BNB has been the recipient of a share transfer involving just over 11.5 million MFS shares. The transaction was the result of an earlier option agreement and will not change BNB’s interest in the company.
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.
