MFS taking time on growth plans

Listed finance firm MFS New Zealand says it still aims to grow a large and diversified financial services firm in this country, but is currently taking it time.

Thursday, October 25th 2007, 6:35AM

Chief executive Jason Maywald told the recent MFS annual meeting that the company "continues to seek out well run businesses with quality people and supportive clients and investors."

"Whilst all around us there is turbulence, it is out of these difficult times that significant opportunity arises for MFS New Zealand."

MFS is looking for "businesses or assets that are neglected or unfinished or in distress," he says. "We will work on them and we will enable those businesses or assets to realise their true potential."

"But we can afford to be prudent and selective in our approach. We can afford to wait for the right opportunities and at any one time we have a range of possible transactions under consideration."

Currently MFS New Zealand has options to buy a number of businesses, currently owned by its Australian parent.

These include:

MFS Boston: A finance company "with a high quality loan book." Maywald expects it to "be the first of a new generation of income product and one that will lead the market as it shifts away from the traditional finance company business model."

Vestar Investment Specialists: This is the planning business formerly known as Northplan. It paid $52 million for Northplan and undisclosed sums for a number of other advisory firms including Swains, Westplan and Jones Financial Planning.

The GTF Group: A structured finance arranger and brokerage firm.

miCentre: A company which provides back office and portfolio administration services to financial planners and fund managers.

Strategic shareholdings in two, unnamed, special purpose funds management companies.

Maywald says MFS New Zealand will decide whether or not to exercise the option and acquire those businesses.

He says if those businesses were acquired today it would transform MFS New Zealand into a company with diversified revenue streams, over $1.5 billion in funds under management and under advice, more than 100 staff, 15 offices and around 20,000 clients.

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