City Pacific has confirmed its interest in acquiring assets of MFS Financial Services’ assets with the announcement that the due diligence process for the purchase is imminent.
“We continue to believe there are substantial synergies and revenue enhancement opportunities by acquiring some of the assets of the MFS Financial Services business,” City Pacific chief executive Phil Sullivan said.
The due diligence process is expected to take about three weeks, a spokesperson for City Pacific said.
The firm’s board of directors then intends to use the due diligence process to determine if the acquisition would boost the liquidity of funds under its stewardship as well as lift investor returns.
The consideration for any asset purchase will consist of an upfront cash payment followed by deferred amount to be determined by investors’ funds retained.
City Pacific had originally expressed an interest in buying the entire MFS businesses, excluding the Stella Tourism Group, but withdrew its proposal upon the announcement MFS would be formally separating its operations into two groups.
Meanwhile property investor MFS Diversified Group has announced it will be changing its name to GEO Property Group.
As part of the initiative MFS Diversified Trust will become GEO Property Trust and MFS Diversified Limited will be renamed GEO Property Limited.
Security holder approval will be sought before the respective name changes are finalised with a new logo to be launched at their next meeting.
