Smh:
AFTER almost three years of courting, the Queensland diversified property and funds management group MFS has unveiled a friendly merger with travel group S8 to form a $1.7 billion property and leisure development company.
Under the deal, MFS will offer S8 shareholders one MFS share plus 70c cash for each S8 share or, alternatively, 1.15 MFS shares for each S8 share. This values S8 at about $700 million.
S8 chief executive Chris Scott has given MFS an option over 19.9 per cent of S8 from his shareholding.
MFS listed in January 2005 as a property funds manager and investment bank and now has about $4 billion of funds under management through two listed trusts, MFS Diversified Fund and MFS Living & Leisure.
The latter has an interest in the Mt Hotham and Falls Creek ski business in Victoria. It also operates, through its unlisted investments, hotels in which investors buy a room and which the company then manages.
Buying S8 will give MFS access to a large distribution network and travel agency data base.
S8 owns 2300 travel agencies under the Harvey World Travel and Gullivers Travel Group banners. Aside from the listed vehicles, MFS owns and manages Stella Resorts properties, which include the Peppers Retreats and Resorts brand and the Port Douglas Sheraton Mirage.
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