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MFS’ Change Of Mind - Keep Stella
November 28 2007 - Australasian Investment Review – (AIR)

Investment firm, MFS Limited (MFS) rose as much as 8.6% to $4.80 on Wednesday, after it said it plans to retain 100% ownership of Stella Group, an integrated travel services and hospitality business.

The decision follows an unsuccessful attempt to sell off a 50% stake in the Stella Group.

Announced in June 2007, the contract was scheduled to be finalised in September in what could have been the biggest deal in Australia’s tourism sector.

However, the plan arrived to a halt after a failure to negotiate a price with its private equity partner.

“Favourable travel market conditions, the potential for further growth and ongoing strong financial results have convinced MFS that Stella Group should be withdrawn from sale,” chief executive Michael King said.
Holding on to Stella, MFS hopes to capitalise on the continuing strength of both the business and the domestic and international tourism and travel sectors.

Michael King said after reviewing Stella’s year to date results, it was the decision of the Board of MFS Limited that it was in the best interests of MFS shareholders for Stella to be withdrawn from partial sale.

“The Stella Group continues to perform very well and is now a key ongoing contributor to the earnings of the MFS business,” he said.

MFS finished 28 cents up at $4.70.

Gindalbie Remains On The Lookout.

Iron ore explorer, Gindalbie Metals (GBG) said it maintains a positive outlook and will continue its transition into an iron ore company in the year ahead, despite some challenges in the past year.

“With the iron ore industry continuing to expand, I am very confident that Gindalbie is only just beginning to realise its growth potential,” chairman George Jones told shareholders at its annual general meeting.

In regard to the past year, he admitted it has been difficult.

“While not without its challenges, the past year has been as an exceptionally productive and rewarding period for everyone involved with Gindalbie.

Last month, the company was unsuccessful in a takeover bid for base metals explorer Sundance Resources.

“During the year, we considered one corporate opportunity in the shape of the proposed merger with fellow iron ore company, Sundance Resources,” Jones said.
“While in this instance both companies made the decision not to proceed, Gindalbie remains on the lookout for opportunities to facilitate growth,” he added.

Changes will also follow on the board membership, with the appointment of Mr Wang Heng, general manager of the Ansteel Group International Trade Company as a non-executive director.

Ansteel Group is the company’s joint venture partner .

In addition, the chairman himself, George Jones, will step down to the role of non-executive chairman.

The Company’s core asset is a 100% owned tenement position in the Mid West region of Western Australia, where it will commence construction on a major new integrated iron ore project.

Gindalbie rose slightly, up 3.8% to $1.37.

Copyright Australasian Investment Review.
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