MIDI plc - Disposal of Tigne Mall Ltd

Friday, February 22nd, 2013

On 22 February 2013, MIDI plc announced its intention to dispose of its 100% shareholding (owned by the holding company and one of its subsidiaries Tigne Contracting Ltd) in Tigne Mall Limited (TML),  the owner and operator of ‘The Point’ retail mall complex as well as 253 underlying car spaces.

In 2012, TML registered a net profit of €475,833 and is expected to generate a net profit figure of €872,486 during the current financial year ending 31 December 2013.

The transaction is subject to approval by MIDI shareholders at an Extraordinary General Meeting (EGM) scheduled for 22 March 2013. It is also dependent on the successful offering to be made by MIDI of its 42,400,000 shares in TML as well as the issuance of a further 14,000,000 shares by TML both priced at the nominal value of €0.50 each. The combined offering of TML is subject to approval by the MFSA. It was also announced that an application has been made for the issued share capital of Tigne Mall to be listed on the Official List of the Malta Stock Exchange. All these conditions have to be met in order for the transaction to go through.

Subscriptions for the combined offering are scheduled to open on 15 April 2013. MSV Life plc has already indicated an interest to acquire 20 million ordinary shares in TML (35.5% of the resultant total issued share capital in TML) whilst Bank of Valletta plc (BOV) will be underwriting the 14 million new share issue.

MIDI is expected to generate net proceeds of €20.9 million from this sale which it intends to utilise to reduce existing borrowings, settle all inter-company balances with TML amounting to €3.6 million and for its working capital requirements namely those related to the construction of the residential block T17 East. Works on the latter commenced last week. Moreover, MIDI is also expected to be in receipt of a dividend from TML amounting to €180,000 with respect to the period 1 January to 30 April 2013. This dividend will be paid in May 2013.

The announcement explained that the disposal of TML will enable MIDI to release a significant amount of capital thereby strengthening the Company’s financial capabilities to enable to deliver against its current plan, namely creating the necessary capacity to raise the financing required to develop the T17 block comprising a total of 102 apartments.

In the EGM circular sent to all MIDI plc shareholders, the Directors are recommending to shareholders to vote in favour of this transaction being proposed by way of an ordinary resolution.

Print This Page Print This Page