RS2 Software plc announced this morning that Barclays Bank plc has reached an agreement with Information Technology Management Holding Ltd (ITM – the controlling shareholder in RS2) to acquire a 10 per cent stake at €1.22 per share.
The agreement is conditional upon certain changes to the memorandum and articles of association of RS2 and to a Barclays representative being appointed to the board of directors of RS2.
In this respect, an extraordinary general meeting is being convened on October 2.
Furthermore, the announcement noted that the agreement is part of a wider transaction through which Barclays aims to acquire up to a 20 per cent shareholding.
The directors of RS2 also noted that this agreement represents a significant and positive strategic development for RS2.
There was an immediate positive response in the market with the share price climbing by 3.3 per cent to the €1.70 level across eight trades totalling 42,527 shares. The equity of RS2 has rallied by 144.1 per cent since the start of this year.
Elsewhere in the local equity market, volumes were shallow with the equity of Island Hotels Group Holdings plc advancing for the third consecutive session. The share price edged 2.5 per cent higher to a new 2013 high of 82c on a single trade of 7,000 shares.
Similarly, Malta International Airport plc inched minimally higher to regain the €1.88 level on volumes of 8,000 shares.
Meanwhile, the only negative performing equity during this morning’s session was HSBC Bank Malta plc which eased 0.8 per cent lower to a new 2013 low of €2.58 across two deals totalling 11,000 shares.
On the other hand, GO plc ended the session unchanged at the €1.60 level across 3,000 shares.
The publication of the 2013 interim results of Tigné Mall plc and International Hotel Investments plc failed to generate any trades.
Tigné registered an improved net profit of €0.34 million on the back of a 7.6 per cent increase in revenue to €2.3 million as the shopping mall continued to be fully leased out coupled with an encouraging increase in footfall and tenant sales.
Furthermore, the company benefitted from a 12 per cent reduction in net finance costs to €0.74 million after the net proceeds from the issue of shares were used to repay some of the company’s borrowings.
IHI registered a 20 per cent increase in EBITDA and a lower net loss of €4.4 million given the improved performances of the Libyan property, the commercial centre in St Petersburg and the London property, which is in its second full-year of operations.
The announcement also revealed that the group is still pursuing the sale of the 12London apartments as well as the Commercial Centre in St Petersburg.
IHI announced that its board of directors is considering a new bond issue in view of the €12.5 million 6.5 per cent bond scheduled to mature in March 2014.
On the bond market, the Rizzo Farrugia MGS Index edged 0.1 per cent higher to 1,024.180 points in line with the continued dip in the benchmark Eurozone yields to 1.84 per cent.
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