JITTERY market conditions and the uncertainty of available capital has spooked MFS.
Yesterday, MFS said it has withdrawn from negotiations with City Pacific with regard to either the acquisition of City Pacific and/or any of its assets.
City Pacific said MFS told the company it did not intend to proceed with those discussions due to the present conditions in the financial markets and uncertainty as to the availability of capital.
Although earlier this week, MFS bought the remaining stake holding in
As for City Pacific, it said it is undertaking its own confidential enquiries regarding the potential expansion of its funds management business by way of acquisition.
Yesterday, City Pacific announced a net profit after tax of $73.21 million for the 12 months to June 2007 – an increase of 17.89% over last year.
City Pacific also announced an interim dividend of 15 cents per security, bringing the final dividend to 34 cps for the year.
Meanwhile, the City Pacific and Grollo owned CP1 delivered its result as well, posting a net profit of $36.8 million, up 20.7% over last year’s result of $30.5 million.
A dividend of 6 cps was announced.
CP1’s managing director Phil Sullivan said since Grocon became a substantial shareholder in June 2007 by acquiring a 17.9% interest in CP1 for $34 million, the company has entered into a new phase of growth
As a result of the Grocon alliance, Grocon CEO Daniel Grollo and CFO Stephen Scanlon have joined the Board of CP1.
“The inclusion of Daniel Grollo and Stephen Scanlon to the CP1 Board provides construction capabilities which will complement CP1’s existing development experience and help drive continued growth,” Sullivan said.
MFS closed 5 cents higher at $4.10, whilst City Pacific and CP1 closed 16 cents lower and 0.005 cents higher to finish at $3.78 and 70 cents, respectively.
Australian Property Journal
