Issue link: https://maltatoday.uberflip.com/i/1445232
maltatoday | SUNDAY • 23 JANUARY 2022 12 COMMERCIAL Over half of CEOs to step up investment and M&A in 2022, but headwinds remain AS the world enters a new phase in the global COVID-19 pan- demic, the majority of CEOs are ready to accelerate plans for investment and mergers and acquisitions (M&A) in their pursuit for growth. These find- ings come from the inaugural EY 2022 CEO Outlook Survey, which recorded the views of more than 2,000 CEOs across the globe on their prospects, challenges and opportunities. More than half of respondents (54%) will prioritize investment in existing businesses, digital transformation and sustainabil- ity, according to the survey. In addition, more than three-quar- ters (79%) of respondents have adjusted, or are planning to ad- just, their supply chain to help reduce costs and minimize risks to prepare for future disruption. Following a record year that saw US$5t worth of M&A, trans- actions will remain a critical tool for CEOs in 2022 complement- ing other areas of investment. Nearly two-thirds (59%) of re- spondents expect their compa- nies to pursue acquisitions in the next 12 months — up from 48% at the start of 2021. CEO investment plans, how- ever, could be thrown off course due to external risks to their business. A majority of the sur- veyed CEOs (87%) appear wor- ried about rising input prices and identify trade tensions (18%), the impact of climate change (17%) and increasing competition from challengers (13%) as the most critical risks to the future growth of their businesses. AWhat's the outlook for M&A in 2022? In the next 12 months, CEOs will be prioritizing deals that will improve operation- al capabilities (26%), and their environmental, social and gov- ernance (ESG) positioning and sustainability footprint (20%), according to the survey. The US, the UK, China, India and Germany are the most fa- vored destinations for those CE- Os looking to pursue an acquisi- tion in 2022. Looking at sectors, technology, health care and ad- vanced manufacturing are the top three sectors more likely to buy assets. Asked to identify the top trends in the M&A market in 2022, responding CEOs said that they expect an increase in hostile and competitive bid- ding (72%), private equity to be a major acquirer (70%), an in- crease in cross-sector (68%) and cross-border (65%) dealmaking, as well as more megadeals (56%). At the same time, however, 65% of respondents admit that they have encountered resist- ance from investors and share- holders about their sustainabili- ty transition strategy; and almost a quarter (21%) say that inves- tors are not showing support for long-term investment plans, or that they are fixated on quarterly earnings. The full report is available ey.com/ceosurvey Medfilm in Malta to celebrate diversity, encourage dialogue in the Mediterranean THE first edition of "MedFilm in Malta – We love the sea", organised by Costantino Films Ltd in collabo- ration with the MedFilm Festival of Rome, with the support of the Arts Council Malta, will be held at Spazju Kreattiv in Valletta from the 21st to 23rd January 2022. MedFilm in Mal- ta aims to combine the love of cine- ma with that of the environment and will be featuring eight works – four feature films and four short films – directly from the MedFilm Festival in Rome, now in its 27th edition. This Festival, founded on the occa- sion of the Centenary of Cinema, seeks to promote the protection of human rights and intercultural dia- logue, the education and training of young people in the socio-cultural and environmental fields, the fight against racism and xenophobia and the promotion and dissemination of European and Mediterranean cul- ture. With the screening of four Na- tional Geographic documentaries and with the help of the Eco Marine Malta Team, who will speak at the end of the screenings, MedFilm in Malta also investigates the beauty and fragility of our sea, part of the vastness of the oceans but also the fulcrum of our cultures. The Festival, chaired by Ginella Vocca and Giovanni Costantino, is part of an international partnership with the film festivals of Formentera, Palma de Mallorca, Menorca, Or- tigia, Alghero and Montenegro and supported by National Geographic. Further information is available on medfilminmalta.com and kreattivi- ta.org AX Group CEO looks back at company's history, future offerings IN an interview with Saviour Balzan, Michael Warring- ton, director of AX Real Es- tate and CEO of AX Group, described the history of AX, the extensive experience in construction, development, health care, renewable ener- gy, real estate and hospitality, as well as innovative projects, including well-known touris- tic projects and developments for high-end, as well as for mass tourism. Reminiscing on the first major project, Suncrest Ho- tel, in Qawra, Michael War- rington described the evolu- tion of the group, from one headed by entrepreneur and visionary Angelo Xuereb to his family. His two daughters, Claire Zammit Xuereb and Denise Micallef Xuereb are now at the head of the group of companies, which employ more than 800 people. Warrington went on to describe the success of the major project in Naxxar, Hilltop Village, the perfect combination between a re- tirement village for elderly people and a care-home and the success it offered to the group, as well as to inves- tors, who had bought into bonds for the project. When speaking of the vi- sion of the future, Mr War- rington namely spoke of the extension of the Suncrest Hotel, with another addi- tional four floors, as well as a major refurbishment, and the development of the Grand Hotel Verdala. The aim of the Verdala develop- ment is to cater for high-end users and clients, who will benefit from the unique de- velopment, excellent design, panoramic views and ideal setting of the project. Warrington said that the Group was offering a new in- vestment opportunity com- bining equity and bonds. The bonds will have a cou- pon of 3.5%. People invest- ing in the equity will be able to purchase the bonds. War- rington described the long history of the group, which spans over nearly five dec- ades, examples of which can be seen all across the island. The group has withstood the competitive edge of various other companies and also the changing times. Michael Warrington