MIDI plc - Joint Venture for Business Centre

Monday, July 14th, 2014

On 12 July, MIDI plc announced that a shareholders’ agreement was signed between T14 Investments Ltd (a fully owned subsidiary of the Company) and Benny Holdings Ltd (a company owned and controlled by Mark Weingard). T14 Investments Ltd and Benny Holdings Ltd formed a joint venture named Mid Knight Holdings Limited with each partner holding a 50% shareholding.

Subsequently, the joint-venture acquired from MIDI plc the emphyteutical title pertaining to the site located at Tigné Point known as T14. The site is approximately 2,000 square metres and will be developed into a business centre. The consideration for the T14 site amounts to €11.7 million, equivalent to the carrying value of the asset, payable to T14 Investments Ltd. The amount will be partly settled by the issue of new shares to T14 Investments Ltd in the joint-venture whilst the balance will be rapid over a number of years. The shareholders’ loan will bear an interest rate of 5% per annum. Principal repayments owed by the joint-venture to T14 Investments Ltd will only be effected after the joint venture repays its bank facilities. Interest and capital repayments are to be settled in full by the joint-venture by 31 December 2029. The sale proceeds, once received, are envisaged to be utilised by the MIDI Group to meet its working capital requirements.

MIDI’s Board of Directors noted that the development of the business centre requires long-term capital resources and accordingly is best undertaken jointly with a strategic partner, in line with the Company’s overall aim to ensure the best use of its existing capital resources. Furthermore, the announcement also explained that MIDI does not exclude that following the completion of the business centre by the joint venture and the maturity of such an operation in the years ahead, it may seek to dispose of its shareholding in the joint venture in order to focus on its principal objective and its main operating activity, that is the development and the subsequent sale of residential and property at Tigné Point and Manoel Island.

In a press release, MIDI’s CEO Mr Luke Coppini added, “Everything is now set to commence on this important component within the mixed-use development at Tigné Point. Mark Weingard brings a wealth of international experience to the project and we look forward to jointly bringing this much anticipated business centre to fruition”.

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