The Wall Street Journal-20080115-City Pacific Ltd-- Bid for MFS Includes Plan To Issue Shares

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City Pacific Ltd.: Bid for MFS Includes Plan To Issue Shares

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City Pacific Ltd. has proposed to acquire MFS Ltd.'s financial- services business in a deal valued at about A$1.33 billion (US$1.19 billion), including debt. The Australian property-investment firm proposed issuing 225 million new shares to pay for MFS's business, excluding the Stella Group tourism division. City Pacific said the transaction has a value of about A$1.33 billion based on each City Pacific share being valued at A$3.70 and the assumption that MFS's financial-services business will hold net debt of about A$500 million. The plan calls for MFS to remain a listed entity owning the Stella business. Yesterday, MFS shares rose 11% to A$3.94 each in Sydney.