C H Baily plc, a Cardiff- based investment company has agreed to sell Villa Rosa and Dolphin House to Vic Bon Ltd., a Maltese company.

Dolphin House, situated in Paceville, has been bought for £2.14 million while Villa Rosa, in St George's Bay, has been sold for £26.79 million. Both sales are conditional on CH Baily's shareholders' approval.

Bailey's shares on Monday soared by 76 per cent as it announced its Malta sell-off.

In a statement Bailey said: "The directors have been exploring the possibilities of realising such value in respect of the group's property interests in Malta and they are satisfied that the Dolphin sale and the Main Site sale on the terms agreed with the buyer are in the best interests of shareholders."

The Main Site includes the Villa Rosa Hotel, the Cresta Quay Beach Club and the Leonardo Da Vinci villa. In the year ended March 31, these businesses contributed £570,307 of revenue to the total Bailey Group revenue.

Dolphin House has been used as classrooms for English language students staying at Villa Rosa.

Bailey said the sale of the Main Site is conditional not only on shareholder approval but also on planning permission granted to the buyer for the development of the site.

It said that if the buyer does not receive planning permission, it will not be obliged to purchase the Main Site and the initial deposit of £750,076 paid will be returned.

The company said: "On receipt of the proceeds of sale of the Main Site in 2013, the board will evaluate the economic climate prevailing at that time and give primary consideration to a reduction of any borrowings within the group and the required working capital of the group.

"The board will also consider opportunities for both short and long term investment and may also give consideration to the payment of a special dividend or the return of capital to the shareholders."