A new major shareholder trying to shake things up at The Plaza in Sliema described the response as “very satisfying” despite falling short of the required support at an extraordinary general meeting held earlier this week.
On the other hand, Plaza Centres plc’s Board of Directors, which had opposed resolutions put forward by Virgata Srl to reduce the number of directors and buy back shares on the open market, will find little to celebrate in a victory secured by the narrowest of margins.
Since building up a 37.6 per cent stake in Plaza Centres throughout 2025, Virgata Srl has been vocal about its intention to take an active role in maximising shareholder returns.
In February, Virgata Srl Founder Jordi Goetstouwers Odena told MaltaCEOs.mt that downsizing the Board (to 5) would increase agility and save on directors’ fees, while the share buyback would offer small shareholders an opportunity to exit at a fair price and boost the stock price for those remaining.
The Plaza Centres Board of Directors disagreed. In a circular to shareholders ahead of the vote, it said the current size of the Board (7) ensures diversity of thought, independence, and prevents its domination by any single interest, while the estimated cost savings would be marginal.
It also pointed to its track record, noting that in the 20 years since its listing on the Malta Stock Exchange it has paid an average yearly net dividend of €716,000 – even during the COVID-19 pandemic.
It therefore warned against “compromising well-established and balanced governance structures for such marginal financial gain,” describing such a move as “imprudent”.
On the proposal to buy back its shares, the Board argued it would deplete its balance sheet for “modest” gains, making it less attractive than alternative ways of delivering value to shareholders, such as through sustainable dividend payouts.
The two proposals needed to clear a high dual threshold, requiring the approval of 75 per cent of shares present and 65 per cent of all shares in issue.
While both resolutions obtained enough support from the shareholder representatives present, they fell short of the second requirement.
Speaking to WhosWho.mt, Mr Goetstouwers Odena nonetheless celebrated the result as a “very satisfying” one, and expressed his gratitude to other shareholders “who voted alongside us for positive change.”
He pointed out that the resolutions “did in fact pass the most important threshold, receiving more than 75 per cent favourable votes from those present at the meeting,” only failing because “an insufficient number of voters were present at the meeting to meet the threshold for immediate full approval.”
A new vote will now be taken at another EGM called for 14th May, with the resolutions requiring the same 75 per cent of those present but only a simple majority of all shares in issue to pass.
Mr Goetstouwers Odena says the resolutions are now “almost certain” to pass.
Plaza Centres’ Board is likely to take a dimmer view of the situation. Shareholders shrugged off its recommendation, exposing cracks in alignment and highlighting its fragile position.
It may have carried the day, but its victory will ring hollow – and will likely be short-lived.
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