Ausssie hotel operator Stella to cut ties with Octaviar
04 August 2009
Tourism and travel giant Stella has cut all ties with the finance and tourism group Octaviar in a bid to delink itself completely from its former parent.
The move comes in the wake of private equity player CVC Asia Pacific's 100-per cent takeover of Stella from Octaviar, the $4-billion finance and tourism powerhouse previously known as MFS.
Stella is Australia's second-largest hotel operator and also owns travel brands such as Harvey World Travel. It says it has been affected by its links to Octaviar.
MFS undertook a $2-billion amalgamation of Stella through the purchase of brands including BreakFree, Peppers Resorts and Mantra. CVC later took a 65-per cent stake in Stella for $409 million.
CVC then took over the balance 35 per cent in a deal that Octaviar worked out with it last month. The deal was confirmed by Stella yesterday.
Following the takeover CVC has restructured the group into two separate divisions, Stella Hospitality and Stella Travel Services.