The share price of GO plc tumbled 4.3% to the €1.34 level despite yesterday’s announcement of the takeover of the Bell Med Group. GO entered into a share purchase agreement for the acquisition of the remaining 40% of the issued share capital of BM IT Limited, BM Support Services Limited and Bellnet Limited for a total consideration of €8 million. Following the €9.5 million acquisition for a 60% stake in April 2009, the total consideration for the entire share capital of the Bell Med Group amounted to €17.5 million. GO has not provided added information on the recent financial performance of the Bell Med Group to enable investors to understand the beneficial impact from this recent takeover.
Bank of Valletta plc also closed the day in negative territory as its share price eased 0.4% lower to the €2.69 level. Seven trades amounting to over 14,700 shares were transacted during this morning’s session. Meanwhile HSBC Bank Malta plc was inactive for the second time this week reflecting the general slowdown in trading activity across the local equity market.
MIDI plc shares were active for the first time in three weeks. The share price slipped 1.1% lower to the €0.435 level across two deals totalling 30,000 shares.
On the bond market, the Rizzo Farrugia MGS Index edged 0.1% higher to 973.934 points as the Eurozone benchmark yields dropped to 2.95%. This afternoon yields continued to drop on speculation over the need for a second bailout for Portugal intensifies after Portugese bonds were downgraded to junk by Moody’s. The sovereign debt crisis is overshadowing the possible interest rate hike by the European Central Bank during tomorrow’s monetary policy meeting.
On the corporate bond market, the first trade was executed in the recently listed fungible issue of the 6.25% Mediterranean Bank plc 2015. A single trade of €80,000 (nominal) was transacted at the 100% level.