|
By a special correspondent
Less than five months ago, government decided to sell 20 per cent of its shareholding in Malta International Airport plc. This meant government, on behalf of the general public was reducing its participation in this asset which is of vital importance for the economy. It is this government’s declared policy to divest of shareholding in state operators but at the same time ensuring that it retains a strong regulatory role.
The government had in 2002, already sold off 40 per cent of the shares direct to an entity, the Malta Mediterranean Consortium. This entity has 57.1 per cent of its shareholding owned by Flughafen Wien AG, the company that owns and operates Vienna International Airport.
Flughafen Wien AG is an active participant in Consortium TwoOne that is bidding for Bratislava airport.
VIE Malta Ltd, which is a fully-owned subsidiary of Flughafen Wien AG now owns 10.1 per cent of MIA. The combined shareholding of Malta Mediterranean Consortium and Flughafen Wien’s subsidiary (VIE Malta) gives them majority control of MIA.
The recent acquisition of more shares by VIE Malta is a sure sign that the Austrian company is committed long term to the development and operations of Malta’s sole airport terminal building. Flughafen Wien have confirmed that their previous participation in MIA led to this move. They have seen the share price double since 2002 when they first entered MIA and have also experienced sound growth in the earnings. MIA plc is committed to exploit its assets and expand its scope of business. The airport company already has a 10.9 per cent stake in the Viset Consortium with the intention of expanding the cruise and fly business. The cruise and fly concept generated 21,000 visitors for MIA during 2004/2005.
Investors have been observing how VIE Malta has brought up its shareholding at MIA plc. Soon after the CHOGM closing off ceremony, in November last year, a company announcement issued by MIA declared that VIE Malta Ltd had five per cent shareholding of the listed company. Just a couple of months later that shareholding jumped to 10.1 per cent.
Government is now left with 20 per cent shareholding. The custodian of people’s assets currently has a 60 per cent stake in Maltacom and 25 per cent in Bank of Valletta, both undergoing privatisation processes.
Government has various options ahead of it as regards the 20 per cent stake in MIA. It can either offer the shares to the public on the Malta Stock Exchange, or sell them off to the majority partners or a combination of both. As things currently stand government cannot claim any additional premium to the market price of its shareholding since the Austrians and the consortium already between them control a majority stake.
The market reacted positively to the announcement of the investment by VIE Malta Ltd and on Friday MIA’s shares edged higher on strong activity with over 43,000 shares changing hands.
MIA has an ambitious project in developing a Mediterranean Business Park, an area covering 140,000 square metres of land opposite and including the main terminal building. It would be good for the local stock exchange market to have another go at the outstanding 20 per cent shareholding in MIA plc.
In all probability there may be some waiting time as the company’s financial year ends on 31 March 2006 and government may want to see the dividend declared and received on approval of the AGM.
Interestingly, the company declared in 2005 that its policy was to distribute all the profits available each year subject to the company retaining adequate levels of working capital.
Anything to boost up government revenue is always welcome, even if it is still the result of Maltese workers under the direction of foreign management.
|
