After a couple of weeks of speculation, Singapore-based private equity firm CVC Asia Pacific have purchased a 65% stake in the Stella group from the embattled MFS. The deal values Stella at around $1.5bn (over half a billion dollars less than the asking price 3 months ago, and about $400m less than it cost MFS to assemble the company.)

However, the deal does bring a degree of certainty back to Stella’s operations – which include the management of a number of Gold Coast resorts under the Mantra, Breakfree and Stella brands. Helped in no small part by the removal of over $900m worth of debts the company was holding. Exactly what effect this will have on Stella’s operations remains to be seen, however given the strong financial backing that CVC can provide, the outlook is certainly more positive than it was several weeks ago.

Tags: CVC Asia Pacific, gold coast, Management Rights, MFS, news, property

This entry was posted on Thursday, February 7th, 2008 at 11:06 am and is filed under General Links, Management Rights, MFS. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.