For Sale: One damaged advisory network

Financial advisory group Vestar is on the market and is won't fetch anything like the $52 million MFS Australia paid for the company in late 2006.

Tuesday, April 29th 2008, 7:45AM
MFS Australia, which is now called Octaviar, released its results for the six months to December 31 yesterday.

It has always listed Vestar as an asset for sale, as the intention was to sell it to its New Zealand subsidiary MFS Pacific, now called OPI Pacific Finance.

However, OPI has been a major reason for Octaviar's A$221.26 million loss reported yesterday, and won't be buying Vestar.

Vestar has been offered to other buyers.

Good Returns understands that a number of bidders including AXA, Macquarie, Dorchester and interested associated with Northplan founder Kelvin Symes have all bid for the company.

And all turned down.

Octaviar still records Vestar as an asset worth A$86 million in its accounts, but acknowledges this could be written down to nothing.

"(Vestar) has lost value as a result of the negative association with Pacific Finance and the group as well as local factors impacting New Zealand based financial services related businesses. As a result of these factors the business's value has been impaired and potentially the asset may need to be written down to nil subsequent to balance date," the accounts say.

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