20% shareholding in MIA to go on offer on Nov. 14

The government is expected to make a public share offer of a 20 per cent stake in Malta International Airport on November 14, sources close to MIA said.

Details of the share issue are expected to be formally announced on November 9.

Sources said the share offer was expected to yield the government about Lm10 million.

The government was expected to offer a five per cent discount to employees, who would be allocated three per cent of the available shares.

Meanwhile, Malta Government Privatisation plc has announced that 50 per cent of the share issue will be reserved for applications from holders of Malta Government Privatisation Bonds who shall be able to exchange their bonds for the shares on offer.

The government will be selling 20 per cent of the company's shareholding to the public after selling 40 per cent earlier this year to Malta Mediterranean Link Consortium, which is managed by Vienna International Airport.

The remaining 40 per cent will be retained by the government.

MIA currently generates an annual turnover of about Lm16 million and handles some three million passengers per year.

It recently appointed Austrian Peter Bolech, a member of the management team at Vienna International Airport, as its chief executive officer.

The agreement with Malta Mediterranean Link runs for 65 years.

The consortium paid Lm20 million to the government for the purchase of equity, with a further Lm20 million paid in the form of dividends and taxes on effecting the signing.

Malta Mediterranean Link is made up of Vienna International Airport-Flughaven Wien AG (VIE) who own 57.1 per cent of the shares, the Canadian firm SNC-Lavalin with 38.75 per cent, with the remaining shareholding held by Airports Investments Ltd, an associate company of the Bianchi Group.