Agreement has been reached between Mapfre Internacional (Mapfre) and Munich Re that, subject to certain regulatory approvals, Mapfre will be acquiring Munich Re's current 19.9 per cent shareholding in Middlesea Insurance plc.

The board of directors of Middlesea Insurance said they were informed that following the completion of this acquisition, Mapfre would increase its aggregate shareholding in Middlesea Insurance plc to 50.98 per cent of the issued share capital, and will thereby acquire a controlling interest in the company.

Mapfre also communicated to the directors its desire to maintain the listed company status of Middlesea Insurance plc, and to work with the listing authority and the other shareholders in this regard.

Upon acquisition of a controlling interest in the company, Mapfre will be required to make a mandatory bid for the remaining shares, whereby the other shareholders would become entitled, but not obliged, to sell their shareholding to Mapfre.

The company has also been informed that Bank of Valletta plc, which currently holds 31.08 per cent of the issued share capital of the company, has agreed with Mapfre that it will not tender its shares under the general offer.