The MSE Index registered an increase for the fifth consecutive week, having advanced by 0.45 per cent, to close at 3,355.327 points. A total of 18 equities were active, of which 11 gained ground, two fell and five closed unchanged. Turnover for the week amounted to over €1.6 million. Plaza Centres plc shares were the best performers for the week, while HSBC Bank Malta plc shares headed the list of fallers.
International Hotel Investments plc (IHI) shares closed the week unchanged at €0.57 as four transactions of 6,051 shares were negotiated. After end of trading yesterday, the company announced it has entered into a conditional agreement with a view to merging the assets and operations of Island Hotels Group Holdings plc (IHGH) within those of IHI through the acquisition by IHI of IHGH. IHI believes that an acquisition of IHGH’s assets, management expertise and businesses will contribute significant synergies across the board and additional development opportunities that will arise as a result of an amalgamation of IHGH’s hotel operation in St George’s Bay with that of IHI’s own neighbouring hotels.
The agreement is subject to the satisfaction of various conditions over the coming months, including compliance with regulatory requirements and obtaining shareholders’ approvals, as well as conducting a satisfactory due diligence on IHGH. Based on publicly available information and IHI’s analysis, IHI has indicated a tentative enterprise value of €106.5 million and a tentative net equity value of IHGH of €50 million.
Based on the completion of a satisfactory due diligence, and the indicative value confirmed, IHI has indicated it would proceed with a voluntary offer for all the shares of IHGH in which the price for IHGH shares would be paid as to €1 in cash, split into two tranches, the first tranche of €0.55 payable on completion and the second tranche payable 12 months later. In addition to this cash component, IHGH shareholders will also receive 0.246 IHI shares for each IHG share held, through the issue of nine million shares by IHI.
The other non-movers for the week were GO plc, 6PM Holdings plc, Santumas Shareholdings plc and MIDI plc which closed at €2.595, £0.70 €2.00 and €0.21 respectively.
Plaza Centres plc shares rallied by €0.035 or 5.4 per cent as three deals of 34,500 shares were negotiated, closing at its 31-month high of €0.685.
In the same industry, Tigne Mall plc shares ended the week 2.7 per cent higher as three trades of 54,000 shares were negotiated, to close at its record closing high level of €0.616.
Malta International Airport plc shares registered an increase for the fourth consecutive week as they rose by €0.039 or 1.7 per cent, closing again at its record high of €2.40. The local airport operator’s shares were active on 15 deals of 46,570 shares. Similarly, Simonds Farsons Cisk plc shares climbed by 0.6 per cent as two trades of 2,765 shares were struck, closing at an all-time high of €3.07.
RS2 Software plc shares appreciated by €0.05 or 1.7 per cent across 24 transactions of 142,420 shares, to close at its record high of €2.97, having traded at a low of €2.85.
Conversely, Crimsonwing plc shares decreased by 1.2 per cent over six deals of 75,949 shares, closing at €0.85. After close of trading yesterday, the company reported that, in connection with the offer received from KPMG Investments Malta Ltd for a voluntary public bid for the acquisition of the entire issued share capital of Crimsonwing, the collecting and paying agents of the bid have received acceptances in respect of 27,397,754 shares in the company, amounting to approximately 90.7 per cent of the entire issued share capital. This represents the fulfilment of another of the conditions subject to which the bid was conditional and revocable in terms of the offer document dated November 28.
Malita Investments plc shares increased by a further 1.6 per cent across a sole transaction of 16,000 shares yesterday, closing at a record high of €0.652. Medserv plc shares advanced by 1.4 per cent across eight trades of 47,434 shares, to close at a 17-month high of €1.47.
Bank of Valletta plc shares appreciated by 2.3 per cent after taking into consideration the bank’s bonus issue of one bonus share for every 11 shares already held which were allotted to shareholders on the bank’s share register as at close of business yesterday. The banking equity witnessed the highest turnover for the week of €504,000, closing at €2.10.
HSBC shares declined by 2.2 per cent as 15 deals of 59,694 shares were struck, closing €0.044 lower at €1.956.
Conversely, Lombard Bank Malta plc shares advanced by €0.05 or 2.9 per cent over 12 trades of 67,165 shares, to close at €1.80.
MaltaPost plc shares increased by a minimal 0.8 per cent as 2,278 shares changed hands on yesterday, closing at €1.21. On a similar note, Loqus Holdings plc shares edged 0.71 per cent higher as a sole deal of a mere 996 shares was executed on Monday.
In the corporate bond market, turnover amounted to almost €3.15 million spread across 34 issues of which 17 gained ground, seven fell and 10 closed unchanged. The 5.75% Central Business Centres plc Unsecured € 2021 S1T1 headed the list of gainers as it gained by two per cent, to close at €102. In the sovereign debt market, 26 issues were active, of which short-term issues declined marginally, while long-dated issues continued to appreciate. Total turnover amounted to just under €17.7 million. The 4.1% MGS 2034 (I) was the top performer as well as the most liquid, with over 2.9 million nominal traded and a 1.6 per cent rally, closing at €115.16.
This article which was compiled by Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors Ltd at 67, Level 3, South Street, Valletta, or on 21224410, or e-mail info@jesmondmizzi.com.