Middlesea planning rights issue after 'strain' of subsidiary's results

Middlesea Insurance plc has called an extraordinary general meeting to increase its authorised and issued share capital after the financial results of its Italian subsidiary placed an 'unprecedented strain' on its capital resources.

In August, Middlesea said that the negative performance of its Italian subsidiary Progress Assicurazioni SpA had caused the group to register a loss before taxation of €17.7 million for the first six months of the year. Progress Assicurazioni SpA contributed a loss of €19.4 million to the Group results for the half year.

Resolutions to be presented to the extraordinary meeting, on November 20, propose an increase in the authorised share capital of the company to €60 million divided into 100 million ordinary shares of a nominal value of 0.60c each.

The Board of Directors is also being authorised, for three months, to issue up to 67 million ordinary shares. The pricing and cut-off date for eligible shareholders that can participate in the rights issue are still being discussed and will be announced once they are finalised.

The new ordinary shares are expected to be admitted to listing in the last week of December. They will be ordinary shares and will rank equally with existing ordinary shares.

The proposed date for the opening of applications for the shares in November 25.

See also

http://www.timesofmalta.com/business/view/20090827/news/italian-subsidiary-causes-middlesea-to-lose-euro-17-7-million