Bank of Valletta Rights Issue

Bank of Valletta PLC has announced a rights issue consisting of 105,000,000 shares with value of roughly €150,000,000. The Rights issue was offered to the existing shareholders appearing on the register of members as at the close of business on the 26th of October 2017.

In the event that any Rights to subscribe for New Shares are not taken up by Eligible Participants they shall be allocated to:

(i) Existing Shareholders that have accepted their Proportionate Entitlement in full and applied for Lapsed Rights;

(ii) Employees; and

(iii) to the general public in Malta through an Intermediaries Offer, in this order of preference

Use of Proceeds

The new shares to be issued will be aimed at further strengthening of the Issuer’s common equity tier 1 (CET1) capital such that the Issuer will be in a better positon to meet its future business requirements and the capital buffers required for such business requirements. The proceeds from the Rights Issue will also be used by the Issuer to meet its general funding purposes.

Terms

The issuer announces the following in respect of the Rights Issue:

1) Rights ratio 1 new ordinary share for every 4 ordinary shares held by existing shareholders

2) Offer price €1.43 per new ordinary share

3) New ordinary shares on offer 105,000,000 ordinary shares of a nominal value of €1.00 per share

Company Overview

Group Operations:

Bank of Valletta (“BOV”) was formed in 1974 and in 1992 BOV became the first public company to be listed on the Malta Stock Exchange. The Government of Malta is the largest shareholder with 25.23% shareholding followed by UniCredit S.P.A. which retains a 14.55% stake in the group.

The Bank's financial services are offered through a network of 37 branches and agencies in Malta and Gozo, and through a number of subsidiaries. It has also developed a worldwide network of correspondent banks and has opened representative offices in Brussels, Milan, and Libya.

Principal activities:

Bank of Valletta p.l.c. is licensed to carry out the business of banking and investment services as well to act as a tied insurance intermediary of MSV Life Assurance Company Limited. It offers the entire range of retail banking services as well as the sale of financial products such as collective investment schemes. The Bank also offers investment banking services, including underwriting, management of IPOs, custodianship and trustee services.

Additional Info

The Rights Issue, if fully taken up, will result in the issued share capital of the Issuer increasing by 25%.

Existing shareholders who accept their proportionate entitlement of rights in full, will suffer no dilution to their interests in the Issuer. However, those shareholders who do not take up any of their rights to subscribe for the new shares will, if the Rights Issue is fully taken up, suffer an immediate dilution of 20% in their interests in the Bank.

HOW TO EXERCISE EXISTING RIGHTS OR BUY LAPSED RIGHTS?

Clients can exercise their right by contacting us on 25 688 688, and be guided accordingly or through the investment advisors in one of our branches across Malta and Gozo.

Applications opened on the 8th of November 2017 and will be closing on the 6th of December 2017 at 14:00pm therefore all applications must be submitted prior.

A copy of the prospectus is available HERE

Furthermore, in light of this rights issue, our research department have conducted an equity research report on BOV. Kindly click HERE to read this report.