Major hotelier Silvio Debono and his wife Veronica Debono have transferred the majority of their shares in SD Holdings, the holding company of db Group, to their four children, while retaining usufruct over the shares and therefore ultimate control.
In a public notice, SD Finance plc, a vehicle used by the group to tap the financial market through a €65 million bond issue, announced that as of 26th May Mr Debono and Ms Debono had transferred the ownership of 1.4 million shares each to their offspring.
Robert Debono, Victoria Debono, Alan Debono and David Debono each received 350,000 shares from each parent.
Mr and Ms Debono retain 600,000 shares each in SD Holdings, plus 1,000 redeemable preference shares, while each of the four children has 700,000 shares.
This leaves the group’s founder and his wife with a minority shareholding in the family holding company.
However, the couple retain ultimate control – usufruct (i.e. right of use) of the children’s shares are hold by their parents jointly, “until the death of the last surviving”.
The move can be read as another step in the group’s succession plans, after it announced the appointment of the four to key official posts in October 2022.
Robert Debono took over as Group CEO, having been named CEO of SD Holdings in 2020.
David Debono was appointed Chief Legal Officer, overseeing all legal matters as well as HR.
Alan Debono was appointed Chief Procurement and Accounting Officer, and Victoria Debono became Brands Manager, nurturing and expanding the group’s Maltese and global brand portfolio.
(Left to right) David Debono, Victoria Debono and Alan Debono
At the time, Mr Debono said: “My wife and I gave our children the freedom to choose their individual paths in life. They took different ones which, as luck would have it, are converging at this very moment.
“I am convinced that they will continue to expand and deepen our Group’s vision and prudently execute it. As the Group’s chairman, I shall oversee this positive transition, ensuring that our strong financial standing is sustained and to see that our excellent track record remains extends to the future.”
db Group is involved in a number of hospitality-related investments, most prominently the Seabank Hotel in Mellieħa and the db San Antonio in Buġibba.
It also operates Porto Azzurro in Xemxija, provides Air Malta’s in-flight catering through Sky Gourmet, and is the local representative and operator of international brands Starbucks and Hard Rock.
Most recently, it launched Sonora and LOA, two popular food outlets and watering holes situated in St Paul’s Bay.
The Group attracted controversy through its attempts to build a high-rise development in St George’s Bay, on the border of St Julian’s and Pembroke, a project which was finally given the green light in Court on Wednesday (yesterday).
The National Audit Office also heavily criticised a €274 million deal that saw the group involved in an “illegal” tender together with James Caterers to manage parts of St Vincent de Paule residence for the elderly.
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