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SYDNEY - Australian financial services and property group City Pacific said yesterday it had made a proposal to acquire most of MFS' businesses in a deal thought to be worth around A$1.3 billion ($1.49 billion).
City Pacific said the transaction, which is still subject to due diligence, would exclude MFS' Stella Tourism Group.
"The board of MFS has advised that it will evaluate the proposal as it agrees with City Pacific that a merger of the two financial services businesses will produce substantial synergies and revenue enhancement opportunities," City Pacific said.
MFS owns 38.5 per cent of New Zealand finance firm MFS NZ, and 19.9 per cent of dual-listed MFS Living and Leisure, which mounted a failed takeover bid for Tourism Holdings last year, and plans to open a treetop walk at Lake Brunner.
Stella owns a hotel group in New Zealand and Australia that includes the Peppers and Mantra chains as well as a network of transtasman travel agencies that includes Harvey World Travel and former New Zealand firm Gullivers.
City Pacific's offer comprises the issue of 225 million new shares to MFS shareholders in return for MFS' financial services business.
- REUTERS
