Octaviar MFS Premuim Income Fund PIF
The Octaviar MFS PIF and plans to sell the investment management arm of the corporation"
"Cash Enhanced Fund"
"Premium Income Fund"
"Wholesale Premium Income Fund"
"Dynamic Growth Equity "
(in recent company announcements) to Wellington Capital, an investment firm with evident links to Mr Scott.
The takeover of Mr Scott was further aided by the new ‘independent’ chairman Paul Manka, and new board-member Jenny Hutson, who also happens to be the managing director of Wellington Capital.
Mr Manka noted that “The board has recognised that it is not in the best interests of creditors, shareholders and other company stakeholders for Octaviar IM to remain a wholly owned subsidiary.”
Ms Hutson has forecasted a final purchase price to be ‘north of $20 million,’ which is a depressing prospect following the value of Octaviar at $1.33 billion when rival City Pacific proposed a merger in January.
The transaction with Wellington is completely legitimate, according to Ms Hutson, and will merely allow Wellington to earn management fees from the funds.
She also claimed her intention was to pursue the $50 million debt from Octaviar, and the $67 million owed by MFS Living and Leisure to the Premium Income Fund.
Ms Hutson made no excuses, recognising that “Our interests are quite different to the people in the Octaviar group.”
In 2006, Mr Scott inherited a large shareholding in Octaviar through the sale of his listed leisure business S8.
The coup may be complete, but Ms Hutson still claims that there is nothing untoward in the recent changes to Octaviar. She noted that Mr Scott was no longer a director, nor a shareholder, of Wellington Capital.
My concerns are: Is it legal for Octaviar Ltd to sell their investment arms (PIF, WPIF, etc) to Wellington Capital?
Who is Wellington Capital and what rights do they have to cheap assignment of the management rights of the investment arms of Octaviar?
I am just a bit confused, are they selling just the management rights or the assets as well to Wellington capital? If just the management rights, then who ownes the assets that investors have plowed $770 million into? If Chris Scott is associated with Wellington Capital via his old mate Ms Hutson, is there a possibility of collusion to somehow eventually sell the assets of the Investments Management Arm (PIF, WPIF, etc) at fire sale rates to Chris Scott/Wellington Capital and any colluding associates at fire sale rates, therefor leaving investors at only getting back cents in the dollar instead of their full investment (colluding buyers of OUR assets making a killing in the sale of OUR assets)? Why hasn't Octaviar PIF and WPIF managers organised a general meeting of investors to discuss these serious matters?
PIF / WPIF investors are hanging on to for dear life, for an orderly and transparent liquidation with the possibilty of some real return in their investment dollar!! (Why are Octaviar and Wellington Capital pretending that the investment arms are going to be a going concern - who would invest in them now? Chris Scott is the 3rd CEO and apparently is only interested in the sharemarket listed side of Octaviar MFS (as he hold many shares there) and seems to be doing his darndest to dispose of the investment arms of Octaviar.
I am further perplexed that the Royal Bank of Scotland has been given such a strong controlling hand in stopping the PIF from paying monthly interest. The PIF may owe $184 million (shock, horror, why weren't we told earlier) to the RBOS, but legally does that mean the PIF has to obey their request to stop interest? Could the Royal Bank of Scotland be a colluding entity with Octaviar/Wellington Capital to stealthily purchase OUR assets at rock bottom prices?
Investors have about $770 million invested in the PIF, what are the PIF / WPIF assets actually worth now, individually and what would they realistically realise in the event of a receiver liquidating assets?
I am hoping that this thread may lead to many responses from Octaviar PIF / WPIF / Cash Enhanced Fund / Dynamic Growth Equity investors. A forum has to be started somewhere for those investors feeling helpless and disenfranchised!! Lets hear from you!!