Crimsonwing share price almost doubles

Times of Malta

Crimsonwing plc’s share price jumped by 87.5 per cent this morning to the 30c level – its highest level since November, on renewed demand totalling 38,000 shares.

This was in reaction to yesterday’s announcement by the company that it will be acquiring the remaining 49 per cent of Promentum BV for a total consideration of €1.2 million.

The acquisition will be settled as follows: the allotment of 2,940,000 shares in Crimsonwing plc to the shareholders of Promentum at a price of 30c per share representing 75 per cent of the consideration whilst the remaining 25 per cent (€294,000) will be settled through a four-year loan.

This acquisition will enable the Crimsonwing Group to consolidate its business activities in The Netherlands under one subsidiary – Crimsonwing NL.

Simonds Farsons Cisk plc also closed in positive territory with a 6.6 per cent rise to a fresh 41-month high of €1.95 but activity was weak with only 728 shares changing hands.

The Farsons Group recently revealed a 26.1 per cent increase in profitability to €4.7 million as well as a 6.3 per cent increase in the final dividend to 5c67 per share.

Coupled with the interim dividend of 1c33, the Farsons Group’s payout to shareholders in respect of the financial year ended January 31 is a record 7c per share.

On the other hand, the equities of HSBC Bank Malta plc and Lombard Bank Malta plc tested new lows.

HSBC’s share price eased 0.4 per cent below the €2.50 level for the first time since May 2009 on a miniscule trade of 150 shares.

A single deal of 1,300 shares was transacted in Lombard Bank at the €2.27 level, representing a 1.3 per cent drop from the previous close.

Moreover, the bank’s equity ended the week in negative territory for the third consecutive week with a further 3.4 per cent decline. Meanwhile, Bank of Valletta plc traded unchanged at the €2.08 level across 12 trades totalling 20,885 shares.

On the local bond market, the Rizzo Farrugia MGS Index eased marginally lower to 988.631 points reflecting a slight recovery in Eurozone yields from yesterday.

Howeverc Europe’s yields are retesting their lows as concerns over Spain’s sovereign debt crisis escalated following the suspension of trading in the shares of Bankia (Spain’s fourth largest bank) ahead of a government bailout exposing the vulnerability of Spain’s banking system.

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