Bank of Valletta plc - Buy Back Offer for Property Fund Investors

On 26 May, Bank of Valletta plc announced that it will shortly be communicating to all investors in the La Valette Multi Manager Property Fund by making a conditional offer to acquire the eligible shares held by them in the Fund for a consideration of €0.75 per qualifying share. Full details of the offer are included in the Offer Document which will be sent to each investor over the next few days. The Offer will remain open for 30 days, until 30 June 2011.

The gross cost of the Offer (prior to any recoveries from third parties) in the event that all eligible investors accept this Offer is estimated at €14 .5 million which will be charged against profits in the second half of the current Financial Year.

In the announcement, the Directors explained that this Offer is being made in an attempt by Bank of Valletta plc to reach a non-confrontational and expeditious closure of those issues which have in recent months become the subject of judicial protests and on-going investigation by the MFSA. The Bank stated that this action is being pursued without prejudice to its rights, remedies and defences at law in respect of the said issues, and without admission by itself or any of the members of the BOV Group of liability, fault or inability to contest fully the unfounded allegations which have been levelled at in recent months. Indeed, this constitutes a bona fide effort by the Bank to provide all eligible investors with an opportunity to settle matters that are in dispute in a fair, equitable and expeditious manner.