Malita Investments plc - New Share Issue

Monday, July 9th, 2012

On 9 July 2012, Malita Investments plc issued a formal notice announcing the issue of 20,000,000 new ‘B’ shares at a price of €0.50 (equivalent to the nominal value of the shares) with an over-allotment option of up to a further 10,000,000 ‘B’ shares. The new ‘B’ shares will be admitted to the Official List of the Malta Stock Exchange.

Malita was set up on 3 June 2011 by the Government of Malta as an investment holding company. The Company’s main objectives primarily include the acquisition, development and management of immovable properties. The Company also aims to leverage its revenue streams and reinvest any undistributed profits in other national and/or strategic real estate projects as well as in commercial properties. The Company currently owns two tracts of land, namely the Malta International Airport and the Valletta Cruise Port sites. Moreover, Malita has a 65-year temporary emphyteusis over the new Parliament Building and Open-Air theatre making up the City Gate project.

Issue Price

€0.50 per share



Over-Allotment Option



Government of Malta

Reasons for the Issue

The share issue proceeds, which net of commissions and expenses and excluding the over-allotment option are expected to amount to just over €9.3 million, will be used to partially fund the €82 million premium required to settle the emphyteutical grants over the new Parliament Building and the Open-Air Theatre.

The remaining €72.7 million will be funded through the cash injection of €25 million by the Government of Malta in cash; €40 million in loans from the European Investment Bank; €4.6 million in funding from two local commercial banks and €3.1 million from the Company’s own operating cash flows expected to be generated in 2012 and 2013.

If the over-allotment option is exercised, the funds raised will be used to repay the €4.6 million bridging finance from the banks.

Risk Factors

Malita Investments plc is subject to a number of risks pertaining to the nature of the Company’s business. Prospective investors are urged to read the Risk Factors found in the Prospectus issued by Malita Investments plc dated 2 July 2012. These are listed in the Registration Document on pages 41 to 45 and in the Securities Note on pages 118 to 119.

Subscription Period

23 July 2012 – 27 July 2012 (or earlier in the case of over-subscription)

Minimum Application for shares

2,000 shares (equivalent to €1,000) and in multiples of 100 shares (equivalent to €50) thereafter.


The ‘B’ shares of Malita Investments plc will be admitted to the Official List of the Malta Stock Exchange.


Malita Investments plc – Prospectus dated 2 July 2012

Malita Investments plc – Authorisation to Apply Form

Should you be interested in obtaining a copy of our equity research note including our recommendation, kindly send us an email on Rizzo, Farrugia & Co. (Stockbrokers) Ltd acted as Joint Sponsors to Malita Investments plc.

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