Stella Group owns Gullivers Travel Group, which has interests in businesses including Holiday Shoppe. Photo / Martin Sykes
MFS New Zealand says the sale of the Stella Group by its major Australian shareholder MFS is good news for MFS Pacific Finance investors.
But it could be some time yet before New Zealand investors gain any certainty.
On Monday, MFS said it had reached a deal to
sell 65 per cent of its tourism business to private-equity group CVC Asia Pacific for A$409 million ($467 million) in cash and would no longer be consolidating A$905 million in debt.
The announcement failed to elicit an instant reaction from MFS New Zealand, which last week told debenture holders in its subsidiary finance company MFS Pacific that it could not meet payments due for January.
But yesterday the company made a brief statement to the New Zealand stock exchange.
"The transaction is good news for investors in MFS Pacific Finance Limited as it will significantly improve the financial position of MFS Limited and with it the potential of MFS Pacific to again obtain financial support to meet its obligations to investors," it said.
"The directors of MFS Pacific are working closely with MFS Limited, their advisers and the trustee in order to resolve MFS Pacific's financial position as soon as possible."
A spokesman for MFS New Zealand said the company was hopeful of a positive outcome for investors.
"However, we are only able to release the details and timeframe of those discussions when we can provide firm detail and a level of certainty to investors," he said.
The New Zealand company remains on a trading halt awaiting news from a strategic review being undertaken by MFS. MFS head of investor services John Hurst said the company's first priority was to pay back a A$155 million loan to Fortress.
The fate of the rest of the Stella sale money was being discussed as part of the review, he said, and the company had put no timeframe on this.
Up to 12,000 investors are thought to have about $300 million in debentures with MFS Pacific: $27 million due to roll over by the end of January and a further $54 million due to mature in February and March.
