FIMBank shares rally following joint offer announcement

MSE Trading Report for week ending December 12, 2013

The Malta Stock Exchange (MSE) Index ended the four-day trading week marginally in negative territory following two weeks of gains. The index closed 0.16 per cent lower at 3,556.674 points on Thursday and witnessed the trading of 17 equities in which gainers and losers tallied at six while five remained unchanged. FIMBank plc was the top performing equity for the week, while Crimsonwing plc headed the list of losing equities.

The equity of the trade finance bank, FIMBank plc rallied by 3.3 per cent across eight trades of 58,313 shares, to close $0.031 higher at $0.975. FIMBank reported that it had received a joint offer from United Gulf Bank B.S.C. (UGB) and Burgan Bank S.A.K. (Burgan) for a joint voluntary bid launched in terms of Chapter 11 of the Listing Rules, in respect of all the issued shares in FIMBank not already held by UGB and Burgan, with the intention of acquiring a controlling interest in FIMBank. UGB and Burgan are offering to purchase and acquire all issued ordinary shares in FIMBank having a nominal value of $0.50 per share at the offer price of $0.95 per share. The acceptance period for the offer is from next Monday until January 20, 2014. The Board of Directors of the bank is scheduled to meet next Wednesday in order to discuss the bid and the effects of implementation of the bid on employment, conditions of employment and the locations of the company’s places of business. After this meeting, the bank will make available to the public a document setting out its opinion of the bid.

HSBC Bank Malta plc slipped by 0.6 per cent as 25 deals of 47,420 shares were negotiated, to close at €2.55. The bank reported that the Board of Directors is scheduled to meet on February 24, 2014 to approve the group’s and the bank’s final audited accounts for the financial year ended December 31, 2013 and to consider the declaration of a final dividend to be recommended to the Annual General Meeting (AGM) – scheduled for April 16, 2014.

Similarly, Bank of Valletta plc succumbed to selling pressure as its share price fell by one per cent across 33 transactions of 93,837 shares, closing €0.025 lower at €2.60. Meanwhile, Lombard Bank Malta plc edged 0.5 per cent higher on Tuesday when a single trade of a mere 631 shares was struck, closing the week at €1.86.

Both Middlesea Insurance plc and MaltaPost plc ended the week in positive territory as their share price gained 1.2 per cent and 0.4 per cent respectively. Trading in the former equity was executed across four trades of 9,547 shares, to close at €0.90, while the latter witnessed two deals of 22,996 shares, closing at €1.135. Both companies reported that the project to seek the appointment of a MaltaPost subsidiary as agent for Middlesea,will not be pursued. However, the Board of Directors of MaltaPost still intends to pursue its project of cooperating with other parties in an insurance activity.

In the I.T. industry, Crimsonwing plc was the worst performing equity as it stumbled by 1.2 per cent over seven transactions of 166,631 shares, to close at €0.85.The company reported that 204 shareholders decided to receive shares instead of the cash divided that was announced on October 17, 2013. This resulted in the issuance of 484,982 new ordinary shares.  Meanwhile, a cash dividend totalling €8,260 will be distributed to those shareholders opting to receive a cash dividend. Likewise, RS2 Software plc shed 0.7 per cent of its share price as 26,249 shares exchanged hands across six deals, closing at €2.282.

MIDI plc was the most liquid equity for the third consecutive week as it was active across eight deals of 188,333 shares, to close unchanged at €0.27. Likewise, Plaza Centres plc, Santumas Shareholdings plc, Malita Investments plc and Tigne Mall plc all traded flat at €0.57, €2.20, €0.525 and €0.51 respectively.

The telecommunications provider, GO plc closed the week 0.9 per cent higher at €1.685, marking a new yearly high, ahead of Wednesday’s deadline on whether GO will participate in the rights issue or otherwise in Forthnet’s €30 million rights issue.The equity was active across 21 trades of 116,640 shares and has rallied by 41.6 per cent year-to-date. The company reported that Forthnet SA (in which GO have an indirect equity holding) notified its shareholders of its Board of Directors’ resolution of December 11, 2013 for a time extension in the exercise and trading period of the pre-emption rights regarding the share capital increase of Forthnet SA. The trading period of the pre-emption rights in the electronic transactions systems of the Athens Stock Exchange (ASE) shall end on December 27, 2013, while the exercise of the rights can be exercised until January 3, 2014.

Malta International Airport plc advanced by 0.5 per cent as seven deals of 10,530 shares were struck, to close at €2.09. On a negative note, Medserv plc lost 0.4 per cent as 32,255 shares changed ownership over nine trades, ending the week at €1.35. Likewise, Island Hotels Group Holdings plc marginally decreased by 0.1 per cent across a single transaction of 40,000 shares, to close at €0.899.

Activity in the local corporate bond market reached a value of €701,274 spread across 21 issues, of which six lost ground, eight advanced and seven closed the week unchanged. The 7.15% Mediterranean Investments Holding plc Euro 2015-2017 was the best performer as it appreciated by €0.95. Meanwhile, in the sovereign debt market turnover amounted to just under €6.3 million across 19 issues – 12 dropped and seven strengthened in value. The most liquid issue was the 3% MGS 2019 (III) FI Nov 13 r with a turnover of €2.5 million nominal on a single deal on Tuesday.