The Board of Directors of Bank of Valletta plc has been informed that an agreement has been reached between Mapfre Internacional (Mapfre) and Munich Re that, subject to certain regulatory approvals, Mapfre will be acquiring Munich Re’s current 19.9% shareholding in Middlesea Insurance plc (MSI). Following completion of this acquisition, Mapfre will increase its aggregate shareholding in MSI to 50.98% of the issued share capital, and will thereby acquire a controlling interest in MSI.

Pursuant to the requirements of the Listing Rules, upon acquisition of a controlling interest in MSI, Mapfre will be required to make a mandatory bid for the remaining shares in MSI, whereby the other shareholders in MSI will become entitled (but not obliged) to sell their shareholding in MSI to Mapfre at the Mandatory Bid price.

BOV, which currently holds 31.08% of the issued share capital of MSI, has conditionally agreed with Mapfre that it will not tender its shares under the Mandatory Bid. Appropriate disclosure of the conditional agreement will be made in the Mandatory Bid documentation in due course, should regulatory approval be forthcoming.