The Spanish insurance company Mapfre Internacional S.A. today purchased 18.3 million Middlesea Insurance plc shares from Munich Re at a price of €0.63 per share via a special trade affected on the Malta Stock Exchange. The agreed price level between the two international insurance companies is marginally above the Net Asset Value per share of Middlesea Insurance plc as at 31 December 2010. Details of this transaction first emerged on 29 April when Middlesea had revealed that Mapfre Internacional S.A. was seeking regulatory approval to acquire the 19.9% shareholding of Middlesea held by Munich Re. This trade was approved by the Malta Financial Services Authority (MFSA) on 17 June.
Following this transaction, Mapfre Internacional S.A. became the majority shareholder in Middlesea with a shareholding of 50.98%. As such, in terms of Chapter 11 of the Listing Rules, Mapfre is obliged to launch a takeover bid for the remaining shares of Middlesea in the coming days. Bank of Valletta plc, who holds a 31.08% shareholding in Middlesea, have already announced that they will not be tendering their shares to Mapfre and will maintain their shareholding in Middlesea.