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Shareholders in listed shell company Vistron yesterday approved plans for investment company MFS NZ to buy it and make a reverse listing on to the main board of the NZX.
After the transaction is complete, MFS NZ - a distant relation to MFS Living and Leisure that is
trying to take over Tourism Holdings - will effectively replace Vistron.
It is expected to begin trading in its new form from July 2 with a market capitalisation likely to be in excess of $50 million.
An independent report valued MFS NZ at about $34 million but the transaction is based on a consolidation of Vistron shares. Trading in Vistron during the past month has pushed its value higher.
Although its only asset is a finance company, chief executive Jason Maywald said MFS NZ should be viewed as an investment company with aggressive acquisition plans. "What we are attempting to do is replicate the MFS model here."
ASX-listed parent company MFS Ltd has a market cap of A$2.6 billion and has assets of more than A$4 billion under management.
It owns funds management companies, including mortgage and property funds. But it also has stakes in and manages several listed funds such as MFS Living and Leisure and MFS diversified group.
MFS Ltd will hold a 40 per cent stake in MFS NZ. The other major stake holder will be Babcock & Brown with about 19 per cent.
Maywald said although MFS Ltd was a major shareholder, the companies would operate as distinct companies with walls in place to ensure independence.
MFS NZ's primary asset is finance company MFS Pacific Finance, which raises capital through debentures and notes here and invests in property back in Australia.
It has been operating since 2003 and, with assets of $330 million, is one of the fastest-growing finance companies here.
Maywald said the reverse listing was preferred to an IPO because the company did not need capital immediately and it provided a cheap and efficient way to get on to the market.
"We didn't need the capital right now. We have strategy that will unfold over the coming months and being a listed entity is just part of that strategy."
The strategy was also likely be quite aggressive.
"If you look at how aggressive MFS Ltd has been in the past few years, you can assume we'll be pursuing a relatively aggressive acquisition strategy," Maywald said.
MFS NZ has an option to buy $100 million of assets from MFS Ltd, which includes Northplan and other advisory groups.
An Australian solicitor, Maywald has worked with MFS Ltd for several years in roles including managing compliance departments as well as listed and unlisted managed funds.
His last Australian-based position for the group was as chief operating officer.