Prospector
Not a scaredy cat anymore
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There is an annnouncement saying it has been suspended, but NAB isnt working so cant find out anymore. Does it mean, kaput?
MFS - MFS Limited
- Thread starter markrmau
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For further information please contact
SHARE REGISTRY
Investor Relations: 131 MFS (131 637) Computershare Investor Services Pty Ltd
E-mail: mail@mfsgroup.com.au Level 3, 60 Carrington Street
Website: www.mfsgroup.com.au Sydney NSW 2000
Telephone: 1300 787 650
ASX & MEDIA ANNOUNCEMENT
MFS LIMITED – SHAREHOLDER UPDATE
Ownership Review of the Stella Group
The Board of MFS Limited (MFS) has today requested that its securities be voluntarily
suspended from trading on the ASX.
As advised to the market on Monday 21 January, MFS had received unsolicited proposals from a
number of parties in relation to Stella. Since then further proposals have been received. The
proposals vary in nature and could involve the sale of a majority stake in Stella. The
consideration for each proposal is cash.
MFS is presently in detailed discussions with a preferred party interested in acquiring a
substantial interest in Stella. MFS is aiming to reach an agreement with either that party or an
alternate party within the next two weeks. The proceeds of any transaction would not only result
in full repayment of all short term maturing debt facilities, but strengthen the financial position of
MFS.
At this stage, the proposals received are conditional on limited further due diligence and
satisfaction of any necessary regulatory approvals.
Given the proposals received and the market reaction to aspects of the demerger proposal
announced on Friday 18 January, MFS has decided to not continue with the structural separation
of Stella from the financial services business in the form proposed.
MFS will continue to keep shareholders informed of any significant developments.
Debt Position
MFS wishes to clarify its debt position. A summary of the MFS group’s debt position is set out
below and in more detail as an appendix to this release.
MFS Group Debt Position – 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
Asset backed facilities - 189 189
Secured term debt 905 150 1,055
Unsecured notes - 443 443
Total debt 905 782 1,687
Cash (102)1 (34) (136)1
Net debt 803 748 1,551
1. Excludes client cash of $48 million held in the travel services business
The vast majority of MFS’ existing debt is not required to be repaid or refinanced until after
31 December 2010:
MFS Group Debt Maturation Profile - 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
< 3 months - 2202 2202
3 months – 1 year - - -
1 year - 3 years - 119 119
3 years – 5 years - 443 443
> 5 years 905 - 905
Total 905 782 1,687
2. Includes asset backed facilities totalling $65 million without a fixed term (primarily margin
loan facilities)
There has been no material change to the net debt position since 31 December 2007.
SHARE REGISTRY
Investor Relations: 131 MFS (131 637) Computershare Investor Services Pty Ltd
E-mail: mail@mfsgroup.com.au Level 3, 60 Carrington Street
Website: www.mfsgroup.com.au Sydney NSW 2000
Telephone: 1300 787 650
ASX & MEDIA ANNOUNCEMENT
MFS LIMITED – SHAREHOLDER UPDATE
Ownership Review of the Stella Group
The Board of MFS Limited (MFS) has today requested that its securities be voluntarily
suspended from trading on the ASX.
As advised to the market on Monday 21 January, MFS had received unsolicited proposals from a
number of parties in relation to Stella. Since then further proposals have been received. The
proposals vary in nature and could involve the sale of a majority stake in Stella. The
consideration for each proposal is cash.
MFS is presently in detailed discussions with a preferred party interested in acquiring a
substantial interest in Stella. MFS is aiming to reach an agreement with either that party or an
alternate party within the next two weeks. The proceeds of any transaction would not only result
in full repayment of all short term maturing debt facilities, but strengthen the financial position of
MFS.
At this stage, the proposals received are conditional on limited further due diligence and
satisfaction of any necessary regulatory approvals.
Given the proposals received and the market reaction to aspects of the demerger proposal
announced on Friday 18 January, MFS has decided to not continue with the structural separation
of Stella from the financial services business in the form proposed.
MFS will continue to keep shareholders informed of any significant developments.
Debt Position
MFS wishes to clarify its debt position. A summary of the MFS group’s debt position is set out
below and in more detail as an appendix to this release.
MFS Group Debt Position – 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
Asset backed facilities - 189 189
Secured term debt 905 150 1,055
Unsecured notes - 443 443
Total debt 905 782 1,687
Cash (102)1 (34) (136)1
Net debt 803 748 1,551
1. Excludes client cash of $48 million held in the travel services business
The vast majority of MFS’ existing debt is not required to be repaid or refinanced until after
31 December 2010:
MFS Group Debt Maturation Profile - 31 December 2007
$ million Stella MFS (ex Stella) MFS Group
< 3 months - 2202 2202
3 months – 1 year - - -
1 year - 3 years - 119 119
3 years – 5 years - 443 443
> 5 years 905 - 905
Total 905 782 1,687
2. Includes asset backed facilities totalling $65 million without a fixed term (primarily margin
loan facilities)
There has been no material change to the net debt position since 31 December 2007.
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These guys are trying to dely the inevitable, not point hiding under the table..............hang onto your seats because i think they will get SMASHED when they come out of suspension!
I dont hold any but its got a very bad smell about it
Best of luck to you game cowboys on this one.
I dont hold any but its got a very bad smell about it
Best of luck to you game cowboys on this one.
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Ive already conceded I will lose on this punt.
I threw $1000 at it for a pure gamble on close of .099 but they have made mince meat out of my dead cat since then... and I dont think there is going to be a bounce.... because the floor just disappeared.
Thankfully it was just pocket change.
I leave my life savings in the bank for now.
I threw $1000 at it for a pure gamble on close of .099 but they have made mince meat out of my dead cat since then... and I dont think there is going to be a bounce.... because the floor just disappeared.
Thankfully it was just pocket change.
I leave my life savings in the bank for now.
These guys are trying to dely the inevitable, not point hiding under the table..............hang onto your seats because i think they will get SMASHED when they come out of suspension!
I dont hold any but its got a very bad smell about it
Best of luck to you game cowboys on this one.
any justification to ur opinion that MFS will "will get SMASHED when they come out of suspension"?
the company has came out confirming their debt position, in my opinion its a bit late, but none the less providing the market with a clearer picture of current company position. Its not all bad news... If CIY is willing to pay $1.3b for MFS Group - Stella, and is considered undervalued, i just cant see the current market cap - $500m staying at this level for very long...
Is this true? Can MFS survive this ?
*************************************
Ailing MFS reveals its debt position is worse than first thought
Scott Rochfort, Sydney
January 24, 2008
GOLD Coast property group MFS has edged closer to oblivion after the company suspended its shares from trading and revealed its debt position is far more grave than what it reported only last Friday.
Just days after former chief executive Michael King played down the concerns about the company's $150 million short-term debt facility, MFS conceded yesterday it would need to use the partial sale of its Stella leisure business to settle the debt and recapitalise its balance sheet.
The company's new chief, Craig White, also confirmed the company was selling off its assets — including its 12% stake in the hedge fund HFA — in a desperate effort to repay its debts. It scooped up about $39 million for the stake, a fraction of what it would have been worth a month ago.
Mr White also said the company was still considering selling its stake in its listed property development trust, MFS Diversified Group, now worth a paltry $25 million.
"I certainly believe that once all the deals are done the company can survive," said Mr White, offering little comfort to shareholders who have seen shares in the group crumble more than 80% from their peak last year.
The company, at least, gave itself another two-week lifeline yesterday when it suspended its shares from trading, pending the possible sale of part of its Stella business to raise cash.
Shares in MFS are yet to trade since Friday, after they slumped 69% in reaction to the company's plans to raise $550 million.
But it is expected MFS shares will fall even further after the company revealed loans previously not disclosed, with its short-term debt facilities suddenly blowing out from $150 million to $220 million.
The group's $1.55 billion net debt position also included a previously undisclosed $65 million loan secured on its "listed investments".
But Mr White denied a report in the The Australian Financial Review that the US lender of the $150 million facility, Fortress, was calling in its loan. But he was later undermined when Commonwealth Bank rejected talk it would refinance the debt after it's March expiry.
Mr White also confirmed MFS was only looking to sell part of Stella and now had "immense interest" in the business.
With the previous bidder CVC the frontrunner, the share suspension will give MFS more time to allow other suitors to have a closer look at the business, which is Australia's second-largest hotel operator and largest travel agent. Its brands include Harvey World Travel and the Saville Hotel Group.
On Friday, the company said the fresh equity would be used to inject capital when it demerged its Stella hotel and travel business from its fund management business. But yesterday it all but confirmed the market's original suspicions, saying it would now need to sell part of Stella to pay off debts.
But when asked to comment on fears the distressed sale of its stake in HFA reflected the company's troubles, Mr White said people were "entitled to their opinion".
*************************************
Ailing MFS reveals its debt position is worse than first thought
Scott Rochfort, Sydney
January 24, 2008
GOLD Coast property group MFS has edged closer to oblivion after the company suspended its shares from trading and revealed its debt position is far more grave than what it reported only last Friday.
Just days after former chief executive Michael King played down the concerns about the company's $150 million short-term debt facility, MFS conceded yesterday it would need to use the partial sale of its Stella leisure business to settle the debt and recapitalise its balance sheet.
The company's new chief, Craig White, also confirmed the company was selling off its assets — including its 12% stake in the hedge fund HFA — in a desperate effort to repay its debts. It scooped up about $39 million for the stake, a fraction of what it would have been worth a month ago.
Mr White also said the company was still considering selling its stake in its listed property development trust, MFS Diversified Group, now worth a paltry $25 million.
"I certainly believe that once all the deals are done the company can survive," said Mr White, offering little comfort to shareholders who have seen shares in the group crumble more than 80% from their peak last year.
The company, at least, gave itself another two-week lifeline yesterday when it suspended its shares from trading, pending the possible sale of part of its Stella business to raise cash.
Shares in MFS are yet to trade since Friday, after they slumped 69% in reaction to the company's plans to raise $550 million.
But it is expected MFS shares will fall even further after the company revealed loans previously not disclosed, with its short-term debt facilities suddenly blowing out from $150 million to $220 million.
The group's $1.55 billion net debt position also included a previously undisclosed $65 million loan secured on its "listed investments".
But Mr White denied a report in the The Australian Financial Review that the US lender of the $150 million facility, Fortress, was calling in its loan. But he was later undermined when Commonwealth Bank rejected talk it would refinance the debt after it's March expiry.
Mr White also confirmed MFS was only looking to sell part of Stella and now had "immense interest" in the business.
With the previous bidder CVC the frontrunner, the share suspension will give MFS more time to allow other suitors to have a closer look at the business, which is Australia's second-largest hotel operator and largest travel agent. Its brands include Harvey World Travel and the Saville Hotel Group.
On Friday, the company said the fresh equity would be used to inject capital when it demerged its Stella hotel and travel business from its fund management business. But yesterday it all but confirmed the market's original suspicions, saying it would now need to sell part of Stella to pay off debts.
But when asked to comment on fears the distressed sale of its stake in HFA reflected the company's troubles, Mr White said people were "entitled to their opinion".
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I'm sick of the media and certain people on this board adding rumours and suspicion to MFS.
i believe the company is undervalued and im sure quite a few people share my view. i also believe that the media has contributed to MFS's freefall or at the very least prevented MFS from having a bounce with all the negative articles.
seems to me that the media thinks this is a nice story to tell and each will add their little bits of fuel to the fire. they want this to be the next CNP as it makes for a nice story and makes their readers feel good. as majority of the readers won't be in on MFS they'll be thinking "gee im glad im not in that sack of ****. im such a good trader"
people who don't even hold this stock will come join the thread and start adding their 2cents.
i believe the company is undervalued and im sure quite a few people share my view. i also believe that the media has contributed to MFS's freefall or at the very least prevented MFS from having a bounce with all the negative articles.
seems to me that the media thinks this is a nice story to tell and each will add their little bits of fuel to the fire. they want this to be the next CNP as it makes for a nice story and makes their readers feel good. as majority of the readers won't be in on MFS they'll be thinking "gee im glad im not in that sack of ****. im such a good trader"
people who don't even hold this stock will come join the thread and start adding their 2cents.
I agree the Media are stirring the pot, not just MFS but a few others also, just ask any AFG shareholder, me included, end of the day there job is to sell there story and that very rarely involves the whole truth, just the juicy bits to sensationalize or create a story.
As to comments on boards like this, that's all they are, someone else's opinion and at the end of the day every post on every thread is just that, someone else's opinion, just like my reply
I agree chicken8
I don't mind people adding their 2c but it's nice if they've considered some facts before dumping their load.
In the case of the media I'm pretty disgusted with the absolute lack of cogent thought that goes into most articles by the McJournalists who feed the ill feeling by subtle innuendo and poor assimilation of the facts.
If you try to "read through" the spotty and poorly reported information we get, I don't think the recent revelations have been all that bad news, it's just been spun that way by the media sheep.
I also feel on fundamentals they are way undervalued (their 2007 NTA per share was $6.29 fer pete's sake!) and when things shake out and less erratic market conditions return they've still got to have an NTA above a dollar.
That said, with the fear in the market at the moment I wouldn't be betting they won't fall any further in the short term.
I don't mind people adding their 2c but it's nice if they've considered some facts before dumping their load.
In the case of the media I'm pretty disgusted with the absolute lack of cogent thought that goes into most articles by the McJournalists who feed the ill feeling by subtle innuendo and poor assimilation of the facts.
If you try to "read through" the spotty and poorly reported information we get, I don't think the recent revelations have been all that bad news, it's just been spun that way by the media sheep.
I also feel on fundamentals they are way undervalued (their 2007 NTA per share was $6.29 fer pete's sake!) and when things shake out and less erratic market conditions return they've still got to have an NTA above a dollar.
That said, with the fear in the market at the moment I wouldn't be betting they won't fall any further in the short term.
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Well guys, if you think there isn't a problem at MFS then you have nothing to fear when the market opens. Why not put in a few buy orders and get more?
You can bang on all you like about the facts being this and the facts that, significant drop in share price is also a fact and the CEO had to resign, thats also a fact, theres lots of facts in fact. I am as entitled to post my opinion as much as you are.
Lets see what happens when they come out of suspension...........
You can bang on all you like about the facts being this and the facts that, significant drop in share price is also a fact and the CEO had to resign, thats also a fact, theres lots of facts in fact. I am as entitled to post my opinion as much as you are.
Lets see what happens when they come out of suspension...........
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i agree chances are the stock will get dumped on opening. but im pretty sure fundamentals means the totally opposite of what happens in the short term
and from your few posts in this thread i'm already getting the feeling that you seek other people's misery for your own pleasure.
please come back into this thread when MFS opens and tell us how right you were. sore winner isn't a good trait amongst traders or anyone for that fact
and from your few posts in this thread i'm already getting the feeling that you seek other people's misery for your own pleasure.
please come back into this thread when MFS opens and tell us how right you were. sore winner isn't a good trait amongst traders or anyone for that fact
Well it doesn't matter if the stock gets dumped when it starts trading again, as long as the company keeps on doing business and keeps keeping on. In time the SP will reflect true value. In meantime, we are left wondering why such a long suspension from trading, is it possible they are insolvent and have no choice or is this just worse case scenario and reality is otherwise.
We can only wait and see. Oh well if I don't lose my money on MFS in long run then I am happy and if I lose it well then I will make it again elsewhere and a big lesson learnt through this experience I hope which will make me a wiser investor in future. I only lose equivalent of 5 weeks wages which is not nothing but its not everything.
I am not buying shares for a living but to invest in the future - so I have to sit back and let the future unfold and not worry. If we worry too much we should not be investing in the stockmarket as stress and anxiety can kill.
ME
We can only wait and see. Oh well if I don't lose my money on MFS in long run then I am happy and if I lose it well then I will make it again elsewhere and a big lesson learnt through this experience I hope which will make me a wiser investor in future. I only lose equivalent of 5 weeks wages which is not nothing but its not everything.
I am not buying shares for a living but to invest in the future - so I have to sit back and let the future unfold and not worry. If we worry too much we should not be investing in the stockmarket as stress and anxiety can kill.
ME
Please don't take things so personally JeSS, but those "facts" you rely on are pretty obvious to us all, and hence, while you are quite entitled to add your opinion, you haven't added much value to the thread, or our joint understanding of the MFS issue.
I guess I was hoping for some analysis of the facts, and perhaps some facts that aren't so obvious or well known that might add clarity.
I'm in no rush to buy, but if I had bought at 99c I be looking for a medium to long term gain - we'll see before too long, won't we?
I may be just a crazy optimist
but I think Centro will eventually rise too - both shares have been oversold to buggery because of market hysteria and lack of good analytical journalism IMHO.
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Lets see what happens when it comes off suspension guys and girls........................ peace and out..............
peace and out..............
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Lets see what happens when it comes off suspension guys and girls........................
Nice value adding to the MFS thread there
Volatility, good or bad is what traders look for, and I have a feeling that JeSSica Wabbit has either been bitten badly or just likes to stir up some sentiment.
In either case, please be gentle with us down and outers.
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JW is more like a stalker getting off on other peoples pain and you dont have to be a brain surgeon to relise this stock for now is not in favour .As far as I'm concerned MFS isn't the only thing that smells. Come back when MFS is heading north or by then you might fine some other poor bastard to lay the boot into:arsch:
There r ppl who take pleasure at other's losses, so they can feel better, kinda like someone who lost $5 comparing themselves with someone who lost $10... But whatever is going around on the market now is all rumours. Lets keep this thread informative, when you have something to inform us, please back it up with something solid.
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At our publication we only put hard facts and leave our story completely out of opinions but we do mention if the company denied to reveal its debt because that's what people want to know.
I think on one hand we should be thankful for the media putting immense pressure on companies to reveal their debt and get the truth out, which in MFS' case was the right thing as everyone discovered its debt surged from $150m to $220m.
On the other hand you do get the McJournalists desperate to write a story and shovel it up with their own opinions (I won't name the newspaper) or unsourced speculation which causes a firesale of assets in companies like Allco and has unjustly ruined the reputation of various companies.
I think on one hand we should be thankful for the media putting immense pressure on companies to reveal their debt and get the truth out, which in MFS' case was the right thing as everyone discovered its debt surged from $150m to $220m.
On the other hand you do get the McJournalists desperate to write a story and shovel it up with their own opinions (I won't name the newspaper) or unsourced speculation which causes a firesale of assets in companies like Allco and has unjustly ruined the reputation of various companies.
I don't know that it is true they denied to reveal its debt. All a person had to do was a little research, do some adding up and it was all there. The company may not have announced it directly to any journalists as it was happening and those journos failed to do their proper research but took the sensationalist road in their articles. There apparently was a lot of leveraged acquisitional spending over past six months which escalated the debt. Each acquisition would have been announced to shareholders and how it was being funded - we just have to check all the past announcements and do sums.
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