Lombard Bank Malta plc announced on 30 July that its wholly-owned subsidiary Redbox Limited entered into an Agreement with the Government of Malta for the acquisition of 700,000 ordinary shares, representing 25% of the issued share capital of Maltapost plc. The Agreement is however still subject to Cabinet approval.
Following the purchase of a 35% stake in Maltapost plc in August 2006, this further acquisition will raise the shareholding of Redbox Limited to 60%, thus resulting in Maltapost becoming a subsidiary of Lombard Bank Malta plc. The Government also announced that it will be disposing of its remaining 40% shareholding in Maltapost via an Initial Public Offering.
Lombard Bank explained that the increased shareholding in Maltapost plc will enable the Bank to expand its market presence and permit both companies to benefit in the medium-term from synergies including a shared and complementary business vision and better utilisation of resources.