MFS' hotel and tourism business, Stella Group has tied a $1.2 billion knot with a private equity firm.
The announcement yesterday follows MFS engaging UBS and Grant Samuel on March 15 this year to find a partner to support the growth, through a capital restructure.
MFS has now selected a preferred partner and has signed a confidentiality agreement. But sources said the partner is private equity firm CVC Asia Pacific.
MFS and the preferred partner have agreed that they will not seek to transact until after the first quarter of FY2008.
The restructured Stella Group will complete the acquisition of the Protea Hotel Group of
In the meantime, Stella Group has completed a brand reconsolidation and stratification process, with two distinct operating divisions being the Stella Hospitality Group, where 10 accommodation businesses have been streamlined into four, and the Stella Travel Services group where the multiple brands now operate globally.
Internationally, both the Golden Tulip group acquired in September 2006 and Protea Hotels to be acquired in July 2007 are trading ahead of Stella Group’s initial expectations.
The Stella Group is expected to deliver an EBITDA contribution of at least $200 million for the 2007/2008 financial year.
In addition, MFS said it remains on track to deliver at least $10 billion of fee paying AUM by June 30, 2008.
MFS has also clarified that it has no interest in acquiring assets of and has no exposure at all to Fincorp or Australian Capital Reserve group of companies.
MFS anticipates a final dividend of at least 20 cents per share will be paid for this financial year.
Australian Property Journal
