Midi to sell Tigne Mall plc

Shopping mall to be sold for €20.9 million.

22 February 2013, 12:00am
by Matthew Vella

1 min read

Midi plc, the developers of Tigné Point have announced they will dispose of their 100% shareholding in Tigné Mall Limited (TML), the owner and operator of The Point retail mall complex and its 253-undergound garage complex.

In 2012, TML registered a net profit of €475,833 and is expected to generate a net profit figure of €872,486 during the current financial year ending 31 December 2013.

The transaction is subject to approval by Midi shareholders at an Extraordinary General Meeting (EGM) scheduled for 22 March 2013 (today).

Subscriptions for the combined offering are scheduled to open on 15 April 2013. But MSV Life plc has already indicated an interest to acquire 20 million ordinary shares in TML (35.5% of the resultant total issued share capital in TML) whilst Bank of Valletta will be underwriting the 14 million new share issue.

Midi is expected to generate net proceeds of €20.9 million from this sale which it intends to utilise to reduce existing borrowings, settle all inter-company balances with TML amounting to €3.6 million and for its working capital requirements namely those related to the construction of the residential block T17 East.

The sale will enable Midi to release a significant amount of capital and raise the financing required to develop the T17 block comprising a total of 102 apartments.

The company said the transaction is also dependent on the successful offering to be made by Midi of its 42.4 million shares in TML as well as the issuance of a further 14 million shares by TML both priced at the nominal value of €0.50 each.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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Dear wateverwillwedo, (1) Again you have failed to provide answers, and typically of people with matters to hide, are using that well known PN technique to mix issues. (2) You have not even understood the point I am raising. I am talking about public institutions that place depositors, shareholders or pension monies in investments that are perhaps not in the best interests of the small ordinary shareholder, depositor and insured person. As someone with power might have the need to lighten themselves from an investment that they would have sucked at long enough and now has turned sour. (3) I fail to understand your final sentence, although I discern the reasoning behind it, and conclude that it must be coming from someone without answers and possessing poor mental abilities.

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dear better future, maybe the people that purchased Midi shopping mall, are just ordinary people like us who may have taken a large loan and are now struggling to pay it off, why say the word institutions when you yourself have know idea who the people are and what was written, you must be mixing up your character and loneliness with the main subject.

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I wonder if they are going to build the 5 star hotel and the break water that they promised on the contract.

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Dear wateverwillwedo, (1) I must be really up there with the greats, if I stopped all of Malta's business, when my comment does not even make sense, according to you??!! (2) Reading your comment, I am getting the impression that you are one of those people that invested in MIDI (the capital letters lean to that deduction), and are counting their lucky stars for the knights in white armour. No denial here that these institutions have loads of publicly owned funds. (3) What jobs are being created here???? Please elucidate. (4) As a long suffering tax payer myself, I am proud that I am able to place facts in front of less knowledgeable taxpayers and citizens, that might eventually get the raw end of the deal. We have had many examples of these investments, and to be perfectly clear, the regulatory authorities were very evident by their absence! (5) You are so out of sync with reality, that your final sentences are completely contradictory. So much for GOOD BUSINESS ACUMEN!!!

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DEAR BETTER FUTURE... ITS PEOPLE LIKE YOU THAT HAVE BROUGHT MALTA TO A STANDSTILL IN BUSINESS, YOUR COMMENT IS WITHOUT SENSE, HOW CAN YOU COMMENT ABOUT TWO SO CALLED INSTITUTIONS IF YOU WERE NOT EVEN PRESENT FOR THE SIGNING OF THE SALE OF CONTRACT, WHAT GIVES YOU THE RIGHT TO ACTUALLY COMMENT ON SOMETHING THAT YOU HAVE KNOW IDEA WERE THE MONEY CAME FROM? IN A BAD MARKET BUSINESS PEOPLE MAKE MONEY AND BUSINESS PEOPLE GO BANKRUPT YES THESE ARE THE RISKS WE ALL TAKE IN BUSINESS. WHEN I READ AN ARTICLE LIKE THIS ABOUT MIDI SELLING TO ANOTHER COMPANY I SAY WELL DONE !! WHATEVER THE PRICE THAT SHOULD NOT BE AN OBSTACLE TO ANYONE. REMEMBER A HEALTHY BUSINESS BRINGS JOBS AND A HEALTHIER LIVING, IT IS A PITY THAT THERE ARE STILL PEOPLE LIKE YOU THAT LIKE TO PASS COMMENTS AND EVEN GO TO THE EXTENT OF PUTTING YOUR COMMENTS ON PAPER, THIS IS WHY MALTA NEVER KEEPS GOING BACKWARDS INSTEAD OF FORWARD AND JOBS ARE LOST. STILL PROUD TO BE MALTESE

Sammy Cutajar •

And shall they give back Tigne CHapel to the people of Malta?

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That is what cash starvation does to a business, or is this a wise business maneuver? I suppose it all depends on pricing!!!! Whatever! In such a depressed market, one needs to be extremely and extraordinarily lucky indeed to find such knights in white armour so readily. However, these two financial institutions (both bearing huge doses of financing from the public's monies) had already been roped in, during earlier cash flow requirement points. I am not a shareholder in any of the entities mentioned here. If I had been, I would certainly have asked the respective Boards to give concrete reasons for the initial investment, and this obvious continued much needed support. Luckily I am not.

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Wish you luck Midi.Finances come and go,and in this economy,any one can go BUST.