Issue link: https://maltatoday.uberflip.com/i/1482153
3 NEWS 20.10.2022 According to the Retail Price Index, Malta has witnessed rapid price growth over the first six months of 2022, with prices rising by an average of 5.1 per cent from January to June. The two main components driving the RPI growth rate in the first half of the year are food and housing. Food is contributing 1.9 percentage points while the housing contribution is at 0.9 percentage points. The next highest contributors are transport and communication at 0.6 percentage points, recreation and culture at 0.4 percentage points, and household equipment and household maintenance costs at 0.3 percentage points. retail price index Land's End Hotel selects Melita Business for communications services FROM PAGE 1 In 2018 it acquired a 49% equity in the private Lombard Bank – valued at just over €51 million – to facilitate the exit of the now-defunct Cyprus Pop- ular Bank. The move was intended at safeguarding the domestic position of Lombard Bank, which is the owner of Malta's major postal service, Malta- post. Since then however, the government has not divested itself of its shareholding as originally intended. Sources told BusinessToday the pre- vious administration had agreed that the NDSF would not be represented on Lombard Bank's board of directors, de- spite its shareholding. Moreover Louis Grech was to be ap- pointed executive chairman, but this never materialised, the same sources claimed. In fact this newspaper is informed that the current administration is moving fast to ensure it - through the NDSF - is properly represented on Lombard Bank's board. BusinessToday last week reported that the NDSF was caught unprepared by the bank's announcement that it intends to access the capital markets with a share issue. That much was confirmed in a letter sent by the NDSF to the bank's manage- ment and board of directors, in which it objected to the new share issue and what this would do to the value of the agency's – effectively government's – sharehold- ing. Over 1,200 shareholders, and invest- ment funds, hold the remaining shares in Lombard Bank, which besides the NDSF, include Virtu Holdings (9.89%), LifeStar Insurance (5.59%) and First Gemini p.l.c. (5.31%). Lombard has a controlling 71.5% stake in Redbox, the owner of postal operator Maltapost plc. Shareholders will now be asked on 10 November to approve a proposed share split, which is intended to allow easier access to a larger number of investors to acquire shares, so that this increases trading liquidity in the share issue. In the complaint it will be filing with the bank, NDSF will be requesting that Lombard Bank agrees that its proposal for a new share issue be approved by a mini- mum of 75% of the shareholders to pass. Share issue, share split The announced share issue – and not the share split – has current and pro- spective investors worried. Lombard Bank has not yet indicated how large a share issue it is planning. Currently it has an allocation of 80 million ordinary shares at 25c each – €20 million – with over 45 million shares issued for a value of €11.3 million. Investors understand that the share- split would help encourage trading activ- ity, by making these 'split' shares accessi- ble to a wider spectrum of investors. But it is the share issue that is proving quite contentious, since it dilutes ex- isting shareholders' power unless they invest in the new issue and buy more shares to maintain their current level of shareholding percentage. That is an issue of no concern to either small or incoming retail investors. But to the Maltese government and other corporate investors, it leads to a diluted influence. When contacted, Lombard Bank CEO Joseph Said – who is also director of the private investment fund First Gemini – refused to issue any comment on the NDSF's position. Said that as an entity listed on the Mal- ta Stock Exchange, "Lombard Bank is bound by regulatory obligations, a num- ber of which also relate to disclosure of price sensitive information". He said that once the bank considers it necessary to update the market it will do so by way of company announcements. Lombard Bank is to ask its shareholders to approve a 2-for-1 share split as it looks to attract new investors by issuing new shares. Directors are recommending that each €0.25 share be split into two, each with a nominal value of €0.125. NDSF insists Lombard's new share issue would dilute its investment Sources claim Louis Grech (pictured), formerly Deputy Prime Minister under Joseph Muscat, was supposed to become executive chairman of Lombard Bank, while the NDSF was to have no representation on the bank's board of directors LAND'S End Boutique Hotel has entrusted Melita Business as its communications partner to provide tailor-made fibre-pow- ered communications services. Mobile, internet, television, and phone services are being provid- ed, as well as the installation of hardware such as PBX telephone system, hospitality TV's and WiFi systems across the premises. e newly opened Sliema- based hotel joins its sister hotels – e George Urban Boutique Hotel and Number 11 Urban Ho- tel – that are already being ser- viced by Melita Business. Malcolm Azzopardi, General Manager of Land's End Boutique Hotel, said: "Considering the outstanding quality of service our sister hotels are receiving from Melita Business, it was a natural step for us to have Melita Business become our communi- cations service provider. Melita's experience in delivering com- munications to the hospitality sector, combined with the cut- ting-edge technology solutions they provide will enable us to provide the best possible service to our guests." Robert Runza, Director of Business Development at Mel- ita Limited said, "We installed dedicated infrastructure at the Land's End hotel, providing un- rivalled fibre-powered internet and a comprehensive telephone system, giving the employees the connectivity they need. e guest rooms are furnished with hospitality TVs replete with ac- cess to an extensive array of TV channels." More information on Melita Business can be found at www. melitabusiness.com. To learn more about the hotel visit www. landsendmalta.com