AGM 2020 – Questions and answers
1. As detailed in the 2019 Annual Report, did IHI obtain approval for banking facilities under the ‘MDB COVID-19 Guarantee Scheme’? If yes, what are the amounts applied for and approved, as well as the payment terms?
IHI has applied for MDB COVID-19 Guarantee Scheme loan funding through three commercial banks. IHI’s applications are currently being reviewed by the respective banks. The loans applied for will not significantly impact the Group’s total indebtedness.
2. Did IHI obtain waivers for the expected covenant breaches for the latter part of 2020 and 2021?
As stated in the audited financial statements it is premature to approach financial institutions for expected covenant breaches for the latter part of 2020 and 2021. At the appropriate time and depending on the outcome of the operating results, the company will approach those financial institutions where a waiver on covenant breaches would be required.
3. With reference to the Chairman’s Statement contained in the 2019 Annual Report wherein a reference was made to IHI’s “tremendous spin-off benefits”, could you please expand further in this respect, and explain whether this also includes a plan for the Group to spin-off one or more of its subsidiaries as a way of creating additional shareholder value or proceeding with the sale of one of its properties despite COVID-19?
We are committed to crystallize gains made over the years in the value of our property through asset sales at the right time and price. Earlier in 2020, we entered into exclusive arrangements with a renowned private equity fund to negotiate the sale of the Corinthia in Prague on the basis of a written offer that was well in excess of our balance sheet valuation. Unfortunately, notwithstanding that due diligence proceeded throughout March and April, the continuing economic impact of the pandemic has stalled this process and negotiations are on hold. The principle however remains that we will actively seek to sell certain hotels and other properties at the right time and price. Clearly, the timing to actively promote asset sales is now not ideal, as investors globally are focused on bargains arising from distressed situations rather than paying a premium for quality assets. However, we remain close to the global markets and will positively entertain offers if and when they are made.
4. Where can I find the link to the webinar to attend the AGM on 31 July 2020?
Please note that the company has issued the following announcement giving more information on the AGM: www.borzamalta.com.mt/download/announcements/IHI296.pdf
As a consequence of the unprecedented circumstances caused by the Covid-19 pandemic, and in line with legal notice 288 of 2020, the Company will be holding this year’s Annual General Meeting on a remote basis on 31 July 2020. The meeting will not be transmitted live. A full report of the meeting will be uploaded on the Company’s website within 48 hours from the meeting.
5. Since the company will not be issuing a dividend this year are any types of discounts being considered?
Shareholders are entitled to discounts in view of their privilege card. The Company will nevertheless consider additional discounts every now and then such as the one recently issued on accommodation at our Malta hotels as explained here: https://insider.ihiplc.com/an-excellent-offer-for-shareholders-and-bondholders-of-ihi/. Should the Company decide to issue additional incentives a communication will be issued accordingly.