Tumas Group will today officially announce details of a €20 million bond issue redeemable between 2014 and 2016.
The issue comes with an over-allotment option of an additional €5 million.
Group chairman George Fenech told The Times Business in an interview that the additional capital will serve to maintain organisational cash flow.
The chairman admits the current economic downturn demands increased business focus, but he is largely optimistic. Most of the group’s 35-odd operations are doing well – plans for development projects are forging ahead, and the hospitality operations’ budgets have been adjusted.
“The recession has hit but it has not been painful. Positive things will come out of it,” he points out. “Various opportunities will arise from the current situation and investors will be spoilt for choice if they are able to grasp them – and if they have been wise.”
Tumas Group has entered into a handful of joint ventures with Gasan Group over property development, and acquired an additional 10 tumoli of land along the Mrieħel bypass. The plot is earmarked for a dedicated business block on a stretch Mr Fenech envisages will turn into a premier financial district within five to 10 years.
Another joint project is Ta’ Monita, a luxury living development on 18,000 square metres in Marsascala, inspired by Portomaso and the Tas-Sellum estate in Mellieha.
Just over a week ago, the government named VGT Group the preferred bidder for the privatisation of one of the business units of Malta Shipyards, which includes the shipbuilding and steel fabrication facilities in Marsa.
VGT, a consortium comprising Tumas Group and Portek International Ltd, the Singapore-based port operator, made plans to transform the former Marsa Shipbuilding site into a container storage facility, public last week. The move would take advantage of increased container transhipment activity in the Mediterranean.
The group’s hotels – the Hilton Malta, and the four-star Dolmen Resort and Topaz hotels – have continued to hold their own within adjusted parameters for the challenging season ahead. Occupancy is meeting projections but Mr Fenech admitted late booking trends made it difficult to forecast guest numbers this summer.
The Tumas Group, run by Mr Fenech and his siblings, employs over 1,500 full- and part-time employees. Audited accounts for 2007 put group turnover at €90 million and pre-tax profits of €3.8 million. Similar results are expected for 2008.
See full interview in today’s The Times Business