Sea Malta sale fails

The fate of Sea Malta was sealed yesterday as the deal that was in the air for Grimaldi to buy the government's shares in the company was scuttled after the General Workers' Union refused to declare that the majority of the line's workers favoured the agreement.

After receiving a letter from Ernest Sullivan, Grimaldi's representative in Malta that "in the absence of a positive reply from the General Workers' Union within the stipulated time, Atlantica Spa is regretfully withdrawing its offer to purchase the government of Malta Sea Malta shares", the government declared it had instructed the board of directors to convene an extraordinary general meeting to dissolve and wind up the company. The meeting has been set for December 12.

In a parallel move, Emanuele Grimaldi, CEO of Atlantica, declared the setting up of a new company, Malta Motorways of the Sea Ltd, in which "at least €20 million" would be invested. This is double the amount Atlantica would have committed under the share purchase agreement with Sea Malta.

"It is with regret that Atlantica must acknowledge that the purchase of the government of Malta's majority share in Sea Malta is not achievable.

"But Atlantica is strongly determined to proceed with its initiatives in Malta. We will anyway pursue our vision to play an important role in building up a shipping network to improve and develop Malta's connections with European and Mediterranean ports," Dr Grimaldi said.

"We are even willing to adopt the same plans and strategies that would have been implemented in the taking over and operation of Sea Malta," he added.

Atlantica expressed its "extreme disappointment that despite more than 16 months of hectic negotiations during which the company incurred substantial legal and due diligence costs, it was not possible to reach an agreement with the GWU on matters concerning Sea Malta seafarers' conditions by the deadline of November 30, 2005".

A company spokesman said the Grimaldi Group Naples had a long affiliation with Malta, its people and its industry and it was because of this that Dr Grimaldi wanted to set up the new company. He was willing to discuss with other stakeholders along the lines as those contained in the Sea Malta share purchase agreement including assuring local industry of regular connections with Italian ports, providing opportunities for employment and offering training opportunities to Maltese sea cadets.

Atlantica acknowledged the efforts and support of all government and non-government authorities and parties involved in its attempt to take over and re-launch Sea Malta.

Grimaldi wanted to streamline the seafarer's tour of duty, who currently work six months in a year. With the new roster they would have had to work a total of eight months and receive a nine per cent increase on their current salaries.

The union proposed a shift of 21 days on, 19 days off but this was not acceptable to Grimaldi.

The company argued that the change in the seafarers' tour of duty had to reflect the competitive business environment that demanded higher levels of productivity and which brings Sea Malta in line with its European counterparts.

Speaking at a press conference last night, the GWU's general secretary, Tony Zarb, said he was surprised to hear that the sale was being called off.

Only yesterday morning, the union had informed the government that while all shore workers were in agreement with what was being proposed, the majority of the seafarers, that is 28 out of 46, disagreed.

Sea Malta employed a total of 144 workers. Mr Zarb appealed for the talks to continue adding that the union wanted to hold a meeting with Dr Grimaldi himself.

Mr Zarb said Grimaldi was welcome to invest in Malta on condition that it would offer jobs to those who wanted to work with the company.

He noted that on November 4 it had been decided that talks would continue until December 31 and that no effort should be spared towards reaching a solution.