Bank of Valletta in a statement today referred to the Labour Party's call for publication of the outcome of the MFSA investigation into the losses made by the La Valette Propertty Fund and said that no investigation has been concluded yet.
The Bank last week said it was offering to acquire the shares held by investors in the investors in the La Valette Multi Manager Property Fund for €0.75 per qualifying share.
"The investigations being carried out by the MFSA are ongoing, and have not as yet been finalised. Therefore, no investigation has been concluded thus far, and the Bank continues to provide the Authority with every assistance and co-operation in this regard," BOV said.
It said that although no part of the investigation had yet been concluded, it had clearly explained in the documents issued last week that differing views appeared to be forming between the MFSA and the Bank around the proper interpretation and subsequent application of the gearing restriction contained in the prospectus – and that the Bank and the Authority may have to agree to differ on this matter.
It had also explained that notwithstanding the fact that BOV and its advisors continued to hold firm views on the proper application of the restriction, it had elected to make the Offer in a bona fide attempt to provide investors with an opportunity to secure an early settlement of matters on a fair and equitable basis, rather than facing prolonged contentious legal action.
"It is important to note that the point of reference for the compensatory element of the Offer is the performance of low geared funds, thus effectively addressing the issue being contested under the investment restriction."
"From a current liquid component of €0.275 per share, investors have received a cash Offer of €0.75 per share, and this as a result of BOV offering to extend to investors the opportunity to receive cash for the suspended Side Pocket shares, together with an additional €0.249 per share by way of a compensatory contribution to the Offer," BOV said.
"The Offer constitutes a step taken entirely on the initiative of the Bank of Valletta Board in a genuine attempt to seek an early, non-contentious resolution of this matter that is considered to be in the best interest of all concerned. The Bank perfectly understands that certain investors may wish not to accept the cash Offer, and may instead elect to pursue legal action or register complaints. These investors are perfectly entitled to follow such a course of action should they so desire, and Bank of Valletta will fully respect their decision in this regard."