KEY POINTS:
Newly listed MFS New Zealand sees the chance of significant opportunities arising out of the turbulence in the finance company sector.
The company listed on the New Zealand stock exchange in its current form three months ago when sister company MFS Living and Leisure was in the throes of an unsuccessful takeover bid for Tourism Holdings.
Before then, it was known as Vistron, and was listed on the NZAX solely for the purpose of being used as a reverse listing vehicle.
Vistron bought MFS NZ in a deal worth about $35 million.
With 38.5 per cent of its shares owned by Australian-listed investment and funds management company MFS, its stated intention is to evolve into a significant player in the New Zealand financial services sector.
Yesterday, chief executive Jason Maywald told MFS NZ's annual meeting MFS saw opportunities to acquire assets and businesses in sectors where aggregation, rationalisation or consolidation could be achieved.
"While all around us there is turbulence, it is out of these difficult times that significant opportunity arises for MFS NZ," he said.
"We continue to seek out well-run businesses, with quality people and supportive clients and investors."
The New Zealand financial services industry was suffering a turbulent and challenging time, but MFS NZ remained well positioned to grow because it could take advantage of the scale and resources of MFS.
"The future of the New Zealand financial services industry is the creation of a significant diversified New Zealand financial services provider," Maywald said.
MFS NZ had an option to acquire a range of financial services businesses. They included finance company MFS Boston, financial advisory business Vestar Investment Specialists, structured finance arrangers and brokers The GTF Group, services provider miCentre, and strategic shareholdings in two special purpose funds management companies.
In time the directors of MFS NZ would decide whether or not to exercise the option and acquire those businesses, Maywald said.
If they were bought yesterday it would have transformed MFS NZ into a company with over $1.5 billion in funds under management and under advice, more than 100 staff, 15 offices, and a client and investor base of about 20,000.
- NZPA
