MIDI has informed shareholders that it is in the company's best interests to avoid legal action and instead pursue a negotiated settlement regarding Manoel Island.

Addressing the matter during the company's annual general meeting earlier this month, Chairperson Alec Mizzi responded to shareholder questions about the ongoing dispute, confirming that formal talks are underway with the government to return the site.

The AGM followed an initial meeting with Prime Minister Robert Abela, who expressed optimism about the potential for an agreement.

MIDI echoed this sentiment, stating that an amicable resolution would be more beneficial than a drawn-out court battle. Portelli noted that, without government and political backing, the project was destined to fail, adding it would be "naïve" to assume otherwise and continue pushing forward.

MIDI maintains legal position

Despite seeking a settlement, MIDI is still contesting the government's assertion that it violated the concession agreement. In a judicial reply to legal action taken by the government, the company rejected the government's claims that it had breached the concession agreement as "unfounded" and warned it would hold the state liable for reputational damage caused by public comments.

The government's protest had demanded penalties for missed deadlines. MIDI countered that clause 8.1.4 - cited by the government as binding -  is not the sole timeframe clause, arguing that other provisions automatically extend the project deadline. The company maintains it is entitled to at least a 10-year extension and pointed out that this interpretation had not previously been disputed by the government.

These legal arguments were also presented at the AGM, with MIDI attributing project delays to factors outside its control, such as prolonged negotiations, archaeological discoveries, a revised masterplan, and an ongoing heritage impact study.

Project valued at €350 million

At the AGM, MIDI disclosed that it values the Tigné Point and Manoel Island concession at €350.3 million. This includes a €57.8 million cash premium, €180.6 million in ground rent over 99 years, and €112 million in infrastructure and restoration costs. It remains unclear how much of this valuation pertains solely to Manoel Island or what compensation the company may seek through a settlement.

MIDI's financial position was also outlined, with the company posting a loss of over €3.7 million last year and its share price falling to its lowest level in five years.