Farsons’ bond issue oversubscribed twice over
Farsons €15 million bond issue oversubscribed by nearly €30.98 million, the company said.
In a statement, it announced the basis of acceptance for the six per cent bonds due 2017 – 2020, which closed immediately after the public offer opened on June 1.
The company said it received 5,120 applications for the issue for a total of €45.98 million, €30.98 million in excess of the aggregate principal amount of the bonds issued.
The company gave preference to ‘preferred applicants’, and reserved €11 million for existing bond holders, shareholders and directors of Simonds Farsons Cisk p.l.c. and employees of the Farsons Group.
Existing bond holders submitted 1,854 applications with a total value of €15.78 million, while shareholders, directors and employees submitted 341 applications with a total value of €5.50 million.
The company also received 2,925 applications from the public with a total value of €24.7 million.
ALLOCATION POLICY
The company decided to satisfy applications on the following basis:
Preferred Portion (existing bond holders)
Existing holders were allocated €10 million and arrived at on the basis of an allocation of the guaranteed amount and a further 29.019 per cent of the remaining amount of each application. The unallocated balance of €5.78 million was carried forward for participation, on a pari passu basis, in the public offer.
Shareholders, directors and employees were allocated €1 million, arrived at on the basis of a minimum allocation of €1,100 per application and a further 12.205 per cent of the remaining amount of each application. The unallocated balance of €4.50 million was likewise carried forward for participation, on a pari passu basis, in the public offer.
Public Offer
Total applications amounting to €34.98 million were submitted for participation on a pari passu basis at the public offer stage, at which stage the remaining balance of the bond issue, amounting to €4 million, was available for allocation. At this stage, all applications were satisfied by the allotment of a minimum of €700 per application and a further 3.497 per cent of the remaining amount of each application.
Interest on the bonds commenced yesterday. The dispatch of allotment advices and refunds of unallocated monies will be made by next Wednesday. The bonds are expected to be admitted to listing on the official list of the Malta Stock Exchange on June 17, and trading expected to commence on June 18.
12 Comments
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Joseph Grech
Jun 10th 2010, 20:17
Where does Farsons get its potable water from?
Does it pay for such water?
Minister for Resources.....please answer this comment.
M. Fenech
Jun 10th 2010, 21:15
I think u need to refer this question to General Soft Drinks Ltd and not Farsons.
MBorg
Jun 10th 2010, 17:02
Why were shareholders allocated such a small amount ? We all know that the return we get from SFC shares is negligible. After showing our faith in the company we should have been treated better, even before the general public
EDWIN DE MARCO
Jun 10th 2010, 16:46
M'HAWNX FLUS FL-IDEJN UKOLL!!
wally vella-zarb
Jun 10th 2010, 15:57
Perhaps the most significant sentence in this report is: "shareholders, directors and employees submitted 341 applications with a total value of €5.50 million."
It is significant because there are 1756 existing shareholders of whom 1528 have less than 5000 shares. This means that well over 80% of existing shareholders do not have enough 'faith' to put more of our money into financing this company, even though we were offered preferred allocation; most of us did not take up this offer. Of course, people who only see the 6% interest rate are welcome to them. The rest of us are uncomfortably aware that the return on our investment over several decades has been dismal, to put it mildly, especially when compared to other equities on the market.
People with political blinkers can rub their hands with glee for all they are worth. We, the original shareholders, know better than to do that.
J. Scerri
Jun 10th 2010, 15:44
More the days pass on & more I get amazed seeing what people writes here.
So according to someone people, The MALTESE CITIZENS(so even the Unemployed, Reduced hour Workers, Part-times against their will, toddlers & Newborns!!) in 24-hours (& only in this bond) invested €77.45 Pro Capita. Now I'm afraid that this far from the actual scenario here. I think it's most propably that from all those Millions mentioned, maybe 1 or 2 of them are from Cikku l-Poplu & the rest from Businessmen & other well-paid employees (of Public Sector in front).
Because you see, the actual picture today is that the BIGGEST part of the Citizens are even struggeling to arrive from Paycheck to Paycheck, so-far from investing all those money. If this story happened in the Eddie Era (BEST LIVING YEARS FOR MALTA) that would have been possible, but actually, that's quite impossible, moreover when one considers that the feeling around is that we're going back in the pre-1987 standard of living (Regular Power Cuts, Employees' rights non-existent, Scandals in public corp. coming out like mushrooms)
And even after all this is happening, the opposition is still silent. So both parties are GUILTY for the actual situation.
Franco Farrugia
Jun 10th 2010, 17:00
... Jien ma fhimt xejn? U intom? Fhimtu xi haga?
Gianninu Saliba
Jun 10th 2010, 13:12
Oh my goodness, Joseph, luck is definately not on your side. Even before you open your mouth, the nation is telling you: "Stop moaning, there is no doom and definately no gloom. Cheer up, Malta is one of a handfull of EU nations that have withstood the economic storm. There are no earthquakes here... just concrete foundations on solid ground." And then the electorate whispers in Dr. Gonzi's ear: "Thank you, thank you Dr. Gonzi. We will show you our gratitude at elections time."
Gianninu Saliba
Jun 10th 2010, 13:05
Joseph lately you have gone dumb (excuse the pun). I do not know if you need to go for speech therapy or to a psychologist. All these PN government projects and achievements have left you flabbergasted. Cheer up man, and enjoy being Leader of the Opposition. Do not aspire for a higher position, otherwise you will be badly disappointed.
S. Calleja
Jun 10th 2010, 16:16
I think what you mean to say is "numb". Dumb is someone who can't tell the difference.
N.Calleja
Jun 10th 2010, 13:00
The public has again shown that they have trust in entities like Farsons and were ready to invest in fruitful ventures. Well done. A big answer to all those who are always maoning about the state of affairs in these Islands.
Joseph E Briffa
Jun 10th 2010, 12:33
Confidence in corporate bonds and in the administration which provides the necessary economic climate to encourage investment.