Farsons approves share capital issue

During an Extraordinary General Meeting at Simonds Farsons Cisk, shareholders approved a resolution to authorise the issue of up to Lm2 million in ordinary shares of a nominal value of 12c5 each.

In another resolution, shareholders approved the amendment of a clause in the company’s memorandum of association to the effect that the company’s Authorised Share Capital of Lm12,250,000 be divided into 26 million Ordinary Shares of 12c5 each; 2 million Preference Shares of Lm1 each; 500,000 Preference Shares of Lm10 each; and 20,000 Preference Shares of Lm100 each.

Following the EGM, the board approved the issue of 1,714,286 Ordinary Shares of 12c5 each at the price of 60 cents per share.

Following the EGM, the Board also confirmed the issuing of two offers to the public. The first consists of Lm1.5 million bonds at 6.25% while the second involves an offer of Lm3 million bonds at 6.6%. Both offers are being issued at a nominal value of Lm100 per bond at par. The former bond is redeemable between 2006 and 2008, while the latter is redeemable between 2010 and 2012.

The applications are subject to a minimum of Lm500 and multiples of Lm100 thereafter. The company may increase the amount of bonds in issue in either or both of the bonds subject to a maximum aggregate limit of Lm1.5 million.

Proceeds from the bonds will be used to fund the redemption of Lm3 million Cumulative Redeemable Preference Shares 2001-2003 at 6% net.

At the beginning of the meeting, Farsons Chairman Bryan Gera asked the shareholders to observe a minute silence in memory of the former Honorary Group President Anthony Miceli-Farrugia.

In his address to shareholders, the Group’s Chief Executive Louis Farrugia gave an extensive overview of the position of the Group’s performance, and explained the bond offers.

Copies of the offering memorandum dated 1 October 2002 and application forms will be available from licenced financial intermediaries. Subscription lists open on Thursday 17 October 2002 and close on Wednesday 23 October 2002, or earlier in the event of an oversubscription.

An application has been made to the Malta Stock Exchange for the bonds to be admitted to its official list and for dealings to commence on the Malta Stock Exchange.