Following last Friday’s 3.3% increase, the share price of RS2 Software plc climbed a further 4.7% during this morning’s trading session to a new all-time high of €1.78 on increased volumes of 251,755 shares across thirteen trades. Last Friday, RS2 announced that Barclays Bank plc has reached an agreement with Information Technology Management Holding Ltd (ITM – the controlling shareholder in RS2) to acquire a 10% stake at €1.22 per share.
The agreement is conditional upon certain changes to the Memorandum and Articles of Association (MAA) of RS2 and to a Barclays representative being appointed to the Board of Directors of RS2. In this respect, an Extraordinary General Meeting is being convened on 2 October.
Furthermore, the announcement noted that the agreement is part of a wider transaction through which Barclays aim to acquire up to a 20% shareholding. The Directors of RS2 also noted that this agreement represents a significant and positive strategic development for RS2.
The only other positive performing equity during this morning’s session was Island Hotels Group Holdings plc which inched 1.2% higher to yet another 2013 high of €0.83 on a single deal of 7,000 shares.
Meanwhile, all other active equities, including the two large banks, ended this morning’s session in negative territory forcing the MSE Share Index 0.6% lower to a fresh 11-week low of 3,416.517 points.
The share price of Bank of Valletta plc eased 0.4% lower to the €2.37 level on volumes of 23,325 shares. Similarly, the equity of HSBC Bank Malta plc retreated 0.8% to yet another 2013 low of €2.56 across 33,425 shares.
Malta International Airport plc shares also shed 0.5% to €1.87 across six deals totalling 63,900 shares. The airport operator is shortly expected to publish the traffic results for the month of August.
Lower volumes were traded in International Hotel Investments plc as its share price eased 2.2% lower to the €0.88 level on volumes of 5,500 shares. Last Friday, IHI announced a 20% increase in EBITDA and a lower net loss of €4.4 million given the improved performances of the Libyan property, the commercial centre in St.Petersburg and the London property which is in its second full-year of operations. The announcement also revealed that the Group is still pursuing the sale of the twelve London apartments as well as the Commercial Centre in St. Petersburg. Furthermore, IHI announced that its Board of Directors is considering a new bond issue in view of the €12.5 million 6.5% bond scheduled to mature in March 2014.
The only other active equity was Malita Investments plc as it slipped by 4.8% to its all-time low of €0.499 across 10,000 shares.
On the bond market, the Rizzo Farrugia MGS Index edged 0.2% lower to 1,022.216 points in line with the surge in the benchmark Eurozone yields to 1.91% on the back of the highest growth rate in eurozone manufacturing since June 2011 and similar multi-year records for the region’s factory output and new orders. Markets also took comfort from the decision of US President Barack Obama to delay any military action in Syria until he consults with the US Congress.
Meanwhile, Medserv plc announced the issuance of €13 million 6% Secured and Guaranteed Notes due 2020/23. Interest is payable twice yearly on 31 March and 30 September. The preplacement will take place on 19 September 2013 and the General Public Offer opens on 23 September 2013. Minimum applications are for €2,000 and in multiples of €100 thereafter.
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