MIA, Maltacom privatisation developments

In a company announcement issued on Tuesday, Malta International Airport stated that by a letter dated September 26, 2005, the company was advised by the Ministry for Investment and Information Technology through the privitisation unit, that the government has determined the general offer price of Lm1.40 per share for the forthcoming sale of a 20 per cent shareholding in the company. Details of the terms and conditions of the offer are to be announced by the government at a later date.

On Thursday, Maltacom plc announced that it has been informed by the Privatisation Unit that the government has undertaken the first phase of a selection process on the basis of indicative non-binding bids for its 60 per cent shareholding in Maltacom plc. Following this initial selection process the government has shortlisted a number of bidders. Each of the selected bidders will now be expected to undertake its own due diligence exercise on the company. In a separate announcement, Maltacom stated that it has appointed Rothschild Spa as its adviser in connection with the sale by the Government of its shareholding in the company.

Meanwhile, Maltacom shares opened the week at Lm1.45 on Monday, went up to Lm1.55 yesterday, before edging down to end yesterday's trading session at Lm1.548, thus representing an overall increase in share price of 9c8 during the current trading week. A total of 45,514 shares changed hands over the week, spread over 39 deals. As yesterday's session drew to a close, 12,690 shares at Lm1.50 and 5,040 shares at Lm1.549 were the best unsatisfied bids and offers respectively.

An increase of 1c5 was registered over the week in Bank of Valletta's share price, as trading in the equity opened at Lm5.485 on Monday and closed at Lm5.50 yesterday. During the current trading week, the price of the equity ranged between a weekly low of Lm5.45 and a weekly high of Lm5.50. A total of 51,805 shares changed hands during the week spread over 80 deals. As yesterday's session drew to a close, best unsatisfied bids for 400 shares at Lm5.50 stood against best unsatisfied offers of 300 shares at Lm5.539.

HSBC shares eased back on gains made in the previous week after trading opened at Lm6.35 on Monday and closed the week's trading at Lm6.22 representing a drop of 13c (2.047 per cent). In the interim, the equity reached a weekly low of Lm6.20. Thirty-two deals were struck during the week, over which 20,095 shares were traded. Best bids for 975 shares at Lm6.26 and best offers of 2,000 shares at Lm6.395 remained unsatisfied as yesterday's session drew to a close.

On Monday the board of directors of Middlesea Insurance plc published the condensed consolidated profit and loss account for the six months ended June 30, 2005. These show an income from insurance activities figure of Lm1,798,441 (June 2004: Lm1.5 million); operating profit of Lm2,151,961 (June 2004: Lm1.5 million); profit for the financial period amounting to Lm1,797,589 (June 2004: Lm1.2 million) and earnings per share of 12c9 (June 2004: 8c1).

On Tuesday, Middlesea Insurance plc became aware that agreement has been reached between the government and Münchener Rückversicherungs-Gesellschaft, whereby Münchener Rückversicherungs-Gesellschaft will be acquiring from the Government an additional 896,584 shares representing 7.17 per cent of the Issued Share Capital of the company. Münchener Rückversicherungs-Gesellschaft's shareholding in Middlesea Insurance plc will thus increase to 19.9 per cent. In another company announcement issued yesterday, Middlesea Insurance plc announced that the above mentioned transaction had taken place through a special trade which took place on the Malta Stock Exchange. These trades were all conducted at a price of Lm3.00 per share. The government now holds a balance of 0.76 per cent shareholding in the company.

Yesterday, Simonds Farsons Cisk plc announced the appointment of Alberto Miceli Farrugia as director of the company with effect from September 1, 2005 in lieu of Luigi Luca Miceli. Furthermore, the company also approved the following appointments within senior management of the Farsons Group: Ray Grech (chief marketing officer), Charles Xuereb (chief financial officer of the group), and Norman Aquilina (managing director of Quintano Foods Ltd) and shall also take over responsibility for Vita Sana srl and Eco Pure Premium Water Co. Ltd.

The other equities which traded during the week appear next, followed by the range in which trading took place: 1,687 Lombard shares between Lm6.73 and Lm6.85; 4,346 Middlesea Insurance shares between Lm3.10 and Lm3.20; 3,110 Simonds Farsons Cisk shares between Lm0.85 and Lm0.86; 88,576 International Hotel Investments shares between €0.699 and €0.70; 4,200 Plaza Centres shares between Lm0.60 and Lm0.62; 103,380 FIMBank shares between US$1.689 and US$1.75; 49,663 Malta International Airport shares between Lm1.39 and Lm1.40; 2,120 Global Financial Services shares at Lm1.295 and 3,100 Datatrak shares between Lm0.299 and Lm0.31.

Total Malta Government Stock turnover amounted to a nominal value of Lm727,200 being traded in 91 deals over 25 different stocks. Of these a nominal value of Lm430,400 changed hands in the last listed five per cent MGS 2021 (I) FI Tranche C over 27 deals. Trading kicked off at Lm106.75 and closed the week's trading at an all-time high of Lm107.25. Trading over the week in corporate bonds was made up of a total value of Lm77,017.

The Malta Stock Exchange share index increased by 13.854 points or 0.35 per cent over the week and now stands at 3,937.681.

Azzopardi Investment Management Limited is licensed by the MFSA to provide investment services, including stockbroking. The company is involved in acting as sponsoring and corporate stockbroker for various listed companies. The directors or related parties, including the company, and their clients, are likely to have an interest in securities mentioned. This article is only meant to provide information, which the writer believes to be accurate at the time of writing, and is not intended to give investment advise and its contents should not be construed as such. The value of securities and the currencies in which they are denominated, may go down as well as up. Readers are requested to seek professional financial advice tailored to their own personal circumstances.

Report by Azzopardi Investment Management Limited, tel. 2131 3100, fax. 21 318897

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