In a statement to the ASX, MFS says that it has finalised plans to find a new partner for Stella, who will provide an injection of funds that is reported to be as much as AUD1 billion, with MFS saying that they and their partner have agreed not to move forward until after the first quarter of the 2008 financial.
In addition the statement says that they have signed a confidentiality agreement not to reveal the partner until then.
The statement said, “MFS has now selected a preferred partner, with the intention of completing a transaction for the benefit of MFS shareholders as soon as is appropriate and, “The injection of cash flow is to support the growth, through a capital restructure, of its recently acquired Stella Travel and Accommodation.”
MFA also says that prior to the completion of the sale, MFS will have completed amalgamation all of Stella’s assets into one stand, with its own debt financing vehicle.
The acquisition of the Protea Hotel Group in Africa and other new acquisitions will be funded from the new acquisition.
Report by The Mole
