MPY - MFS Living and Leisure Group

[scsl]

This may well be a contentious point…

Yesterday I received in the mail yet another prospectus and PDS on behalf of MFS Limited, and after having a close look through it, couldn’t help but notice the similarities between MFS and Macquarie Bank.

This time, MFS Living and Leisure Group (MLG) are raising $175 million. ‘What is it for?’ you might ask. Well, MFS are conducting this capital raising so that MLG can effectively acquire MFS’s aquarium and ski resorts businesses. This ‘offloading’ of assets from its balance sheets is exactly what Mac Bank is famous for.

Interestingly enough, the Macquarie bankers are the sole lead manager and underwriter.

Mac Bank has well over a dozen ASX listed property and equity funds, not to mention it also has many unlisted funds. I’m sure we can all name at least 3 or 4 of these. MFS (which has a market cap of $917 million compared with MBL’s $16,784 million) is also starting to make a name for itself, with 4 listed funds, including the recently successful float of HFA Holdings.

This brings us to fees. MLG will pay MFS an acquisition fee alone of $2.6 million. Down the track, MFS, like MBL, will continue to reap all sorts of fees from its listed funds, including base management, incentive and performance fees.

Apart from this offloading of assets into listed funds, MFS also manages a broad range of income, direct property and its ASX listed funds. MFS specialises in diversified funds management, structured finance and tourism and currently manages over $2.5 billion in funds across Australia and New Zealand.

The following is from MLG’s prospectus:
MLG will seek to combine its management’s expertise with MFS’s fund and asset management expertise, execution and financing capabilities. MFS’s deal flow, client relationships and expertise in identifying further investment opportunities are expected to be a key advantage to MLG.
Does this sound familiar??

Will MFS be the next ‘millionaire’s factory’? I’d like to think so! Any thoughts?

Cheers
scsl

Please do further research and note that I hold shares in MFS and HFA.

 

[michael_selway]

Re: The next Macquarie Bank?

This may well be a contentious point…

Yesterday I received in the mail yet another prospectus and PDS on behalf of MFS Limited, and after having a close look through it, couldn’t help but notice the similarities between MFS and Macquarie Bank.

This time, MFS Living and Leisure Group (MLG) are raising $175 million. ‘What is it for?’ you might ask. Well, MFS are conducting this capital raising so that MLG can effectively acquire MFS’s aquarium and ski resorts businesses. This ‘offloading’ of assets from its balance sheets is exactly what Mac Bank is famous for.

Interestingly enough, the Macquarie bankers are the sole lead manager and underwriter.

Mac Bank has well over a dozen ASX listed property and equity funds, not to mention it also has many unlisted funds. I’m sure we can all name at least 3 or 4 of these. MFS (which has a market cap of $917 million compared with MBL’s $16,784 million) is also starting to make a name for itself, with 4 listed funds, including the recently successful float of HFA Holdings.

This brings us to fees. MLG will pay MFS an acquisition fee alone of $2.6 million. Down the track, MFS, like MBL, will continue to reap all sorts of fees from its listed funds, including base management, incentive and performance fees.

Apart from this offloading of assets into listed funds, MFS also manages a broad range of income, direct property and its ASX listed funds. MFS specialises in diversified funds management, structured finance and tourism and currently manages over $2.5 billion in funds across Australia and New Zealand.

The following is from MLG’s prospectus:
MLG will seek to combine its management’s expertise with MFS’s fund and asset management expertise, execution and financing capabilities. MFS’s deal flow, client relationships and expertise in identifying further investment opportunities are expected to be a key advantage to MLG.
Does this sound familiar??

Will MFS be the next ‘millionaire’s factory’? I’d like to think so! Any thoughts?

Cheers
scsl

Please do further research and note that I hold shares in MFS and HFA.

Its not bad, ist up there with MBL, BNB, RCD (AFG)

are there any risks u see thi MFS?

thx

MS

 

[RichKid]

Re: The next Macquarie Bank?

Do followers know the stock code for the stapled security? It's not coming up under 'MLG'. I assume it's been listed.

 

[scsl]

Re: The next Macquarie Bank?

Do followers know the stock code for the stapled security? It's not coming up under 'MLG'. I assume it's been listed.

MPY - MFS Living and Leisure Group

It's been listed since mid 2003 but the 175 million new stapled securities issued in the recent capital raising started normal trading on 18 July.

RichKid, do you hold any MPY shares?

 

[scsl]

Re: The next Macquarie Bank?

Its not bad, ist up there with MBL, BNB, RCD (AFG)

are there any risks u see thi MFS?

thx

MS

When compared to the likes of MBL, BNB and other diversified financial companies, MFS’s associated risks are not completely different. However, the risks that are significant to the large investment banks are not likely to have as much a bigger impact on MFS. For example, when MacBank talks about its future earnings potential, it uses lines such as “subject to current buoyant economic and sharemarket conditions continuing”. MacBank requires these conditions so that they are able to successfully purchase and then sell assets off their huge balance sheet, subsequently ‘clipping the ticket’ every step of the way i.e. confidence in the economy means MBL can easily raise capital and lure investors.

It is only recently that MFS has started to regularly conduct these investment bank-type activities. Its predominant activities are receiving management and related fees and other revenue from its assets under management and tourism and leisure products. So until MFS derives most of its profit from buying and selling assets, its main risks will differ from MBL, BNB, RCD etc.

I recently had a look at MFS’s website and the latest research report (from Shaw Stockbroking) gives a very good overview of what MFS does. I recommend potential investors have a close look at it…
http://www.mfslimited.com.au/pdf/research/mfs20060627_shawstockreport.pdf

 

[twojacks28]

Re: The next Macquarie Bank?

there are many little macquarie banks which do many great deals but they are not the same size.

 

[BSD]

Re: The next Macquarie Bank?

The asset quality of the 'spin offs' from MFS is hardly up to those from Macquarie.

A trust holding a few aquariums of questionable profitability and some alpine resorts with a lack of snow don't really deserve to be mentioned in the same sentence as assets of the standard of MIG, MAP, MCW and MOF.

The lower the quality of the spin-offs - the more the need for a bull market.

They have done very well though in the last two years.

HFA was a great investment and very difficult to match. They paid something like $3m for it a couple of years ago from SUN.

Will be interested to see how the mortgage (read 'development') fund goes when activity falls and opportunity wanes.

 

[scsl]

Re: The next Macquarie Bank?

there are many little macquarie banks which do many great deals but they are not the same size.

Yes, that's like saying there are many resource companies that produce a variety of commodities, but they are not as large as BHP. Keep in mind that the likes of MacBank, BHP, CBA and many other large cap stocks came from humble beginnings...

 

[RichKid]

Re: The next Macquarie Bank?

MPY - MFS Living and Leisure Group

It's been listed since mid 2003 but the 175 million new stapled securities issued in the recent capital raising started normal trading on 18 July.

RichKid, do you hold any MPY shares?

Thanks very much Scsl, I don't hold any MPY but saw a good review in the media a few weeks ago. It's tough for most stocks in these rougher markets. I might check out the chart later on.

 

[The Mint Man]

Re: MPY: MFS Group....The next Macquarie Bank?

Found this thread somehow and thought I would bump it up as a reminder that you should never take advise or hear say from anyone either on here, in the media or from a so called expert. While they all may have valid points you should always DYOR when making investment decisions.
If you still get caught in nasty situations like the one OCV (formally MFS) is in now then at least you know you invested for the right reasons at the time. Ultimately (hopefully) this will lead to your eventual financial success.

Just out of curiosity, those who posted back then (who are still on these forums) would you mind telling us if you did end up buying into MFS and how long did you hold?

Richkid's second last sentence couldn't relate to this current market any better!!! and that was written over 2 years ago

Cheers

 

[kostag]

MFS and others Equititrust

MFS and Equititrust link:

just saw this in the paper about David ANDERSON an ex MFS exec who with David Kennedy - also an ex MFS exec - now run Equititrust Ltd - a holder of $300million of public funds, in a similiar structure to what MFS was..... is this someone we want minding our money - we might get offerred a dollar as well:-

MFS directors made 'dollar deals' KATE LAHEY
June 16, 2010
.MORE than a year after investment group MFS collapsed with $1 billion in inter-company loans and owing creditors $2.5 billion, directors were still making deals through its entities, in one case giving away a third of a company to one of the men for nothing, a court has heard.

As examinations by liquidator Kate Barnet resumed in the New South Wales Supreme Court yesterday, two former directors were questioned about the sale of one particular company, MFS Alternative Asset Ltd (AAL) last year.

BusinessDay has previously revealed that AAL now has a stake in a company, Aurora, which is preparing to float. The sole director and a shareholder of AAL today is former MFS chief financial officer David Anderson.

In June last year, Mr Anderson asked two directors of McLaughlin Financial Services (an original MFS entity) to sell its 33 per cent stake in AAL to Mr Anderson's own company, Management Finance Pty Ltd, for $1. His company would then bill AAL a $1 administration fee, the court heard.