Farsons confirms intent to spin-off food business

 

The MSE Equity Price Index increased by 0.14% 3,785.770 points as the gain in Medserv offset the decline in MIDI. Meanwhile, five other equities closed unchanged as today’s total trading activity in local equities was subdued at under €60,000. Download today’s Equity Market Summary.

Today, Simonds Farsons Cisk plc announced that following the strategic review of opportunities for the further expansion of the Food Business of the Farsons Group (currently carried out by Quintano Foods Limited and Food Chain Limited), the Board of Directors has concluded that the further growth of the Food Business as well as the interests of the Group, its shareholders and other stakeholders would be best served through its reorganisation by way of a Spin-off of the Food Business as a separate legal entity that would be listed on the Malta Stock Exchange. The Board envisages the number of ordinary shares in the anticipated listed entity that would equate to the same number of ordinary shares in issue under Simonds Farsons Cisk plc. A dividend in specie would then be distributed to the current shareholders of the Company, and hence each shareholder would receive an equivalent number of shares in a newly listed entity. The Board has authorised executive management to initiate the requisite legal, regulatory, taxation and related processes and measures that would enable this separate listing to take place. The approval of the shareholders in a General Meeting will be required for the implementation of any restructuring, and therefore the matter will be brought before the shareholders in due course, probably at around the second half of 2025.

Half of today’s value traded was across the shares of Bank of Valletta plc which closed unchanged at the €1.71 level over six deals amounting to 16,800 shares.

Also among the large companies by market value, GO plc (1,255 shares) and HSBC Bank Malta plc (5,805 shares) remained unchanged at the €2.70 and €1.45 levels respectively.

Malta International Airport plc held the €5.90 level on trivial volumes.

Malita Investments plc traded flat at the €0.505 level across two deals totalling 2,600 shares. Malita is holding an Extraordinary General Meeting tomorrow to approve a change in auditors for the year ending 31 December 2024 from PricewaterhouseCoopers to KPMG. Such recommendation was made by the Audit Committee after having taken into consideration a number of important factors, including but not limited to the proposals received further to a competitive tender process undertaken by Malita Investments.

MedservRegis plc closed the session 12.3% to the €0.595 level with the volume-weighed price for the day amounting to €0.576 (+8.6%) across seven trades amounting to 25,281 shares. Last week, MedservRegis issued an Interim Report providing information on their financial and business performance during the nine-month period ended 30 September 2024. The Medserv Group generated total revenue of €50.2 million which was practically unchanged compared to the corresponding period in 2023. EBITDA during the nine-month period amounted to €12.6 million which is 7.7% higher than the €11.7 million reported for the same period last year. The EBITDA margin for the first nine months of the year improved to 25.1% compared to 23.3% in the first three quarters of 2023.

MIDI plc fell by 0.9% to the €0.232 level on a single trade of 2,000 shares.

Yesterday, the Board of Directors of PG plc resolved to distribute a net interim dividend of €0.025463 per share, unchanged when compared to the corresponding interim dividend paid out for the first half of the 2023/24 financial year. The interim dividend is payable on Friday 6 December 2024 to all shareholders as at close of today’s trading session. Board of Directors is also scheduled to meet on Thursday 19 December 2024 to consider the approval of the interim financial statements for the six-month period ended 31 October 2024.

The RF MGS Index rose by a further 0.07% to 919.918 points reflecting the continued downward pressure on euro area sovereign bond yields. The prospects for economic growth in the eurozone remain weak with the German consumer morale reaching a 7-month low for December 2024. Elsewhere in the US, the personal consumption expenditure price index increased by 2.3% on an annual basis, in line with expectations.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap—370 of the Laws of Malta and a member of the Malta Stock Exchange