During this morning’s trading session on the Borza, Crimsonwing plc’s share price jumped by 87.5% to the €0.30 level (its highest level since November 2011) on renewed demand totalling 38,000 shares in reaction to yesterday’s announcement regarding the complete acquisition of Promentum BV. The IT Company yesterday revealed that it will be acquiring the remaining 49% of Promentum BV for a total consideration of €1.2 million. The acquisition will be settled as follows: the allotment of 2,940,000 shares in Crimsonwing plc to the shareholders of Promentum at a price of €0.30 per share representing 75% of the consideration whilst the remaining 25% (€294,000) will be settled through a 4-year loan. This acquisition will enable the Crimsonwing Group to consolidate its business activities in the Netherlands under one subsidiary – Crimsonwing NL.
Simonds Farsons Cisk plc also closed in positive territory with a 6.6% rise to a fresh 41-month high of €1.95 but activity was weak with only 728 shares changing hands. The Farsons Group recently revealed a 26.1% increase in profitability to €4.7 million as well as a 6.3% increase in the final dividend to €0.0567 per share. Coupled with the interim dividend of €0.0133, the Farsons Group’s payout to shareholders in respect of the financial year ended 31 January 2012 is a record €0.07 per share.
On the other hand, the equities of HSBC Bank Malta plc and Lombard Bank Malta plc tested new lows. HSBC’s share price eased 0.4% below the €2.50 level for the first since May 2009 on a miniscule trade of 150 shares. A single deal of 1,300 shares was transacted in Lombard Bank at the €2.27 level, representing a 1.3% drop from the previous close. Moreover, the Bank’s equity ended the week in negative territory for the third consecutive week with a further 3.4% decline. Meanwhile, Bank of Valletta plc traded unchanged at the €2.08 level across twelve trades totalling 20,885 shares.
On the local bond market, the Rizzo Farrugia MGS Index eased marginally lower to 988.631 points reflecting a slight recovery in Eurozone yields from yesterday. However Europe’s yields are retesting their lows as concerns over Spain’s sovereign debt crisis escalated following the suspension of trading in the shares of Bankia (Spain’s fourth largest bank) ahead of a Government bailout exposing the vulnerability of Spain’s banking system.