City Pacific has withdrawn its offer to acquire assets owned or controlled by MFS Financial Services.
In a statement to the Australian Securities Exchange (ASX) yesterday, City Pacific chief executive Phil Sullivan confirmed the group had ended its due diligence process and was no longer in discussions with MFS.
"After considering the merits of any proposed transaction, the board has determined that it would not be in the best interests of City Pacific shareholders or investors to proceed," Sullivan said.
Earlier this month, City Pacific informed the market it was interested in purchasing assets of MFS Financial Services.
At the time, Sullivan said: "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 also confirmed it had no current financial exposure either as an investor or lender to any member of the MFS Limited Group.
It had originally expressed an interest in buying the entire MFS business, excluding the Stella Tourism Group, but withdrew its proposal upon the announcement MFS would be formally separating its operations into two groups.
MFS has applied to ASIC for an extension of time in which to lodge its financial results for the six month period ended 31 December 2007.
The company informed the ASX that due to material events during the past five weeks, they are having difficulty in finalising its results.
"MFS will be in a better position to inform the market as to the likely timing of the release of its accounts once it has received feedback from ASIC in relation to the application for an extension and after further discussions with its auditor, KPMG," MFS said.
