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2nd August 2012

Malita Investments p.l.c Allocation Policy Announcement

Malita Investments p.l.c. is pleased to announce the basis of acceptance for the issue of 30 million ordinary B shares of €0.50 each, which were open for subscription by the general public and institutional investors between Monday 23 July 2012 and Friday 27 July 2012. As the share issue was over-subscribed, the Company decided to close the issue on Thursday 26 July 2012, as announced in the media on the same day.

The Company received 1,239 applications for the Share Issue for a total of 30.97 million shares. As a result of the surplus demand, the Company had to scale down a number of applications for a total of 971,000 shares that had been applied for in excess of the maximum amount of shares being issued.

In establishing the allocation policy, the Company has decided to satisfy applications up to 1 million shares in full. Applications over this amount have been allocated 88.16% of the original amounts applied for, rounded down to the nearest 100 shares. As a result, 99.6% of all applications have been satisfied in full.

Refunds of unallocated monies will be made by Friday 3 August 2012. The company will be dispatching allotment advices to all applicants by Wednesday 8 August 2012. The Shares are expected to be admitted to listing on the Official List of the Malta Stock Exchange on Tuesday 7 August 2012, and trading in the shares is expected to commence on Monday 13 August 2012.

 

26th July 2012

Malita Investments p.l.c share issue fully subscribed

 

"The Board of Directors of Malita Investments p.l.c. announced early on Thursday afternoon that in view of the encouraging response from investors, the issue of ordinary ‘B’ shares in Malita Investments p.l.c. was closed ahead of the scheduled time. Funds in excess of €15 million have been collected since the 23 July 2012 opening of the issue period.

The level of interest generated by the share Issue was such that the Company, after having received applications for an initial 20 million ordinary ‘B’ shares of €0.50 each, was in a position to exercise the option to issue an additional 10 million ordinary ‘B’ shares, thereby raising the total number of shares issued to 30 million.

Given that the total number of shares applied for exceeds the maximum amount available, applications may need to be scaled down in accordance with the allocation policy which is to be published by Malita Investments p.l.c. by Thursday the 2nd August 2012 in accordance with the time table set out in the Prospectus dated 2 July 2012.”

 

 

 

4th July 2012

Malita Investments p.l.c to issue 20,000,000 ordinary B shares to the public

Malita Investments p.l.c will be issuing 20,000,000 ordinary B shares at a nominal value of €0.50 each to the public with a further over allotment of 10,000,000 ordinary B shares. The shares are being offered at an issue price of €0.50 each. This was announced by Kenneth Farrugia, Chairman of Malita Investments p.l.c during a media conference to launch the issue.

Speaking about the Company, Mr Farrugia said that “Malita Investments p.l.c was set up on 3rd June 2011 as a fully owned Government entity to acquire, develop, manage and operate a portfolio of immovable assets which includes a selection of properties that are of strategic national importance.  The Government of Malta will retain at all times a shareholding of 70% in the Company, unless otherwise determined by the House of Representatives.

Apart from Mr Farrugia who chairs the Board of Directors of the Company, Malita’s board complement also includes Mr Vincent Mifsud, Mr Frederick Mifsud Bonnici, Mr Danny Rosso and Ms Anne Marie Tabone. This complement provides the Company with a complimentary set of skills in the accounting, audit, governance, banking, investments and insurance fields of business.  Moreover, in order to ensure adherence to the code of principles of good corporate governance, the Board set up an audit committee, an investment committee as well as a remuneration and nominations committee.

Mr Farrugia went on to say that “Malita Investments p.l.c has been capitalized by the Government of Malta through a €25 million cash injection, as well as through the transfer of the directum dominium of Malta International Airport and the Valletta Cruise Liner Terminal. These two properties being long established landmark locations of strategic and national importance have to date paid regular ground rents which will now be received by Malita Investments p.l.c.. Through these two property transfers as well as the cash equity injection, Malita will have a pre IPO capitalization of Euro 59 million.

The first two urban regeneration investments undertaken by Malita Investments p.l.c were the acquisition of the Parliament Building and the Open-Air Theatre from the Government of Malta through the grant of a temporary emphyteusis for 65 years against a premium of Euro 82 million and a ground rent of Euro 100,000 per annum. In return, these two investments are expected to generate revenues to the Company in the form of rent receivable by way of two lease agreements entered into between Malita Investments and the Government of Malta. The funding of these two acquisitions will be undertaken through a long term finance facility of Euro 40 million entered into with the European Investment Bank at a fixed rate of interest, the Company’s own capital of Euro 25 million, the proceeds of the IPO as well as the Company’s own operational cash flows.

As a result of the transfers and the property investments, Malita Investment’s revenue streams will primarily be derived from four core long term contractual arrangements consisting of the ground rents from Malta International Airport and Valletta Cruise Ports as well as the lease payments from Parliament Building and the Open Air Theatre.

Mr Farrugia also went on to explain that “the Company’s business profile is such that the existing revenue streams are highly visible and quantifiable, given that they arise from long term contractual agreements. These contracts also provide for the periodic revision of the ground rent and rental income. Moreover, the Company’s cash outflows also carry a high degree of visibility. These comprise the fixed rate of interest on its bank facility with EIB as well as corporate administration costs and taxation with the resulting proportion of cash surplus expected to be distributed in dividends to shareholders, such that the latter will receive a consistent return on the nominal value of their ordinary shares.  In fact, it is the Directors’ intention to distribute a total dividend to the holders of ordinary shares in the Company equivalent to approximately 60%-75% of the profit after tax earned in a financial year. Consequently, in the absence of unforeseen circumstances and subject to applicable law, the Company will pay its first dividend representing the final dividend for the year ending 31 December 2012, in April 2013. An interim dividend is also expected to be paid in September 2013 following the publication of the interim results for that period. These two distributions would equate to an annualised gross dividend yield of 7.0% of the Issue Price. The Company is thereon planning to pay an interim and annual dividend every calendar year”.

Subscriptions for shares are to open on Monday, 23rd July 2012 and will close on Friday 27th July 2012. The ordinary shares are expected to be listed on the Official List of the Malta Stock Exchange on 16 August 2012 and trading is expected to commence on 17 August 2012. Investment in the ordinary shares of the Company should be undertaken after giving due consideration to the prospectus which is available on request from the financial intermediaries as set out in Annex 2 of the Securities Note forming part of the prospectus and electronically from www.malitainvestments.com.