Update | BOV seeking to adopt variable remuneration share plan at AGM

Bank of Valletta will be seeking shareholders' authorisation at an upcoming annual general meeting to adopt a variable remuneration share plan and to make awards of BOV shares as part of the variable executive remuneration.

Awards under this share plan may be satisfied using either the issuance of new shares or through shares purchased in the market.

BoV dismissed reports that it was seeking approval for a new share issue or that shareholders would be called to inject new capital to maintain their holdings. It said the resolution of the AGM's agenda was seeking the authorisation of shareholders to issue up to a maximum of 14,596,232 shares from the Bank's authorised share capital.

If issued in full, this would be equivalent to 2.5% of the Bank's current issued share capital. The 2.5% limit is an overall cap on the Bank's obligations under the variable remuneration share plan and it is not envisaged that this cap will be reached any time soon.

In the event that the Bank opts to issue new shares from its authorised share capital, this will entail only a marginal dilution of the rights of other shareholders.

Finance Minister Edward Scicluna also dismissed reports of a new share issue or that the government, which holds a 25% shareholding in BOV, would be injecting new cash. He confirmed that it is the government's policy to maintain its 25% holding in the bank.

The AGM is scheduled for 26 November.