MFS Ltd Selling Shares, Stella and Changing Their Name
Over the past few days, embattled MFS Limited has made several moves towards paying off the $220m worth of short-term debt it must cover by March.
In addition to selling most of it’s 16.9% stake in MFS Diversified (it’s development arm which owns development company Villa World) and a 3.5% stake in Babcock & Brown Communities Group, MFS has also reported selling the Domain Aged Care Group to AMP for $93.5 million ($43.5 of which is profit). This is good news for shareholders, as it has dampened some of the ‘fire sale’ atmosphere that has been surrounding the group over the past few weeks.
Perhaps the most anticipated sale is that of a major stake in key asset Stella which is presently under negotiation. With Stella owning management rights to a large number of Gold Coast resorts and apartment buildings, this is probably the move being most keenly watched by Gold Coast property investors and building managers. At this stage, it is unknown when any official decision will be reached regarding the Stella sale, but given the short-term debt deadline, one suspects that it will have to be soon.
In addition to the fundraising, it is understood that from April 1st, MFS will have a new name – it’s moniker being given to Boston’s ‘Massachusetts Financial Services’. It is not known what the proposed new name will be.
Tags: General Links, gold coast, Management Rights, MFS, news, property, selling shares
