Issue link: https://maltatoday.uberflip.com/i/1502123
NEWS 16 maltatoday | SUNDAY • 25 JUNE 2023 KURT SANSONE MALTA'S golden passport fund lifted its veto on a new share issue by Lombard Bank, a move that effectively dilutes its stake in the private institution. The National Development & Social Fund, whose revenues are generated by the sale of Maltese citizenship, on Friday voted in fa- vour of a resolution to issue new shares and increase the bank's share capital. The NDSF, which holds a 49.01% stake in Lombard, had last year blocked the board's proposal saying it was not accompanied by a presentation to shareholders, in- cluding the reasons for the issue. It remains unclear what prompt- ed the change of heart since the latest decision will dilute the NDSF's stake by half. The NDSF has not communicated its reason- ing publically. During Friday's annual general meeting, bank shareholders also approved the appointment of two new directors representing the NDSF's interests. Despite holding the largest stake in the bank, the NDSF was not represented on the board, some- thing which it requested last year. The fund's nominees. former PN international secretary John Bonello, who in 2017 exhorted Labour voters to re-elect Joseph Muscat, and Chamber of SMEs president Paul Abela, were elected to the board of Lombard Bank. The NDSF acquired a 49.01% of the Lombard's shares in 2018 to retain domestic control after the exit of Lombard's Cypriot share- holders. The investment, valued at just over €51 million, was intended to facilitate the exit of the now-de- funct Cyprus Popular Bank. The move was a measure to safeguard the domestic position of Lombard, which is the owner of Malta's ma- jor postal service, Maltapost. The NDSF's investment was in- tended to be a temporary one, how- ever, since then the fund has not divested itself of its shareholding. Over 1,200 shareholders, and in- vestment funds, hold the remain- ing shares in Lombard, which besides the NDSF, include Virtu Holdings (9.89%), LifeStar Insur- ance (5.59%) and First Gemini p.l.c. (5.31%). Lombard, which is run by CEO Joseph Said, has a controlling 71.5% stake in Redbox, the owner of postal operator Maltapost plc. National golden passport fund lifts veto, agrees to dilute stake in Lombard Bank Paul Abela (top) and John Bonello