Midi plc has announced plans to sell its shares in The Point and the underlying car park through an initial public offering.

“The company believes that the disposal of long-term commercial assets such as The Point through the sale of its ordinary shares in TML (Tigné Mall Limited) is today in the best interest of its business, and hence of its shareholders,” the company said in a statement.

The sale, it added, would release significant financial capital back to Midi and strengthen its capabilities to deliver against its current plans by reducing the bank borrowings.

Midi Group is offering 42.4 million shares and Tigné Mall Limited is issuing 14 million shares. This combined offering of 56.4 million shares is all at a price of €0.50 for a total IPO value of €28.2 million.

According to a valuation by KPMG and DeMicoli Associates, the assets are worth €58 million.

MSV Life, which holds a 12.55 per cent shareholding, has indicated an interest to acquire 20 million shares in the offering and it is expected that Midi and MSV will enter into a conditional subscription agreement prior to the initial public offering.

Bank of Valletta, which holds an 8.9 per cent shareholding in Midi, is expected to underwrite the issue of the 14 million shares.

Midi will be holding an extraordinary general meeting about its plans. The shares are expected to be offered next month.