MFS is looking to launch a tourism fund for its Stella Resorts brand after gaining control of Tourism, Hotels and Leisure Limited following.
Yesterday, 96% of TLC shareholders accepted MFS’ offer 20 cents per share, which is currently due to close on September 20, 2006.
MFS Tourism’s chief executive Rolf Krecklenberg said following the 96% TLC shareholder acceptance an immediate review of TLC’s operations had commenced and MFS would look to move to integrate TLC’s assets and operations into the MFS-owned Stella Resorts Group.
On completion of the acquisition MFS intends to move to delist TLC from the ASX.
“The addition of TLC’s 15 CBD hotels around Australia to the Stella Resorts Group portfolio will further enhance the diversity of Stella’s product offering.
“TLC operates a network of 15 properties in Australia, with six in Sydney, four in Melbourne, two in Adelaide and one in Brisbane, Canberra and Perth. It offers suites, apartments and resorts ranging from superior first class to moderate deluxe,” he added.
TLC also has a significant shareholding in Dutch-based Golden Tulip, which is the 18th largest hotel operator in the world with more than 500 properties spread across 40 countries of which 50 are in the Asia Pacific region. MFS intends to specifically consider this asset as part of its strategic review of TLC.
In addition to the acquisition of shares in TLC, MFS has also agreed to buy the freehold, leasehold and management rights associated with certain properties managed by TLC.
MFS’ managing director Phil Adams said all TLC assets would be integrated into the Stella Resorts Group.
Adams said the acquisitions are the next step in an ongoing and current process to execute MFS’ strategy of creating a separate investment vehicle for the Stella Resorts Group and MFS’ tourism assets.
By Nelson Yap
