Melita sold to major European equity group

GMT Communications Partners (GMT), the leading European independent private equity group focused exclusively on the communications sector, has signed an agreement to acquire Melita Cable plc, the leading provider in television, broadband and telephony services in Malta, from Nasdaq listed Liberty Global and the Gasan Group of Companies.

Melita Cable said GMT will acquire a majority shareholding and the Gasan Group will retain a minority interest.

"Melita Cable plc is in a strong position to keep on expanding and improving its service portfolio and market share and to carry out the necessary investments in order to become Malta's leading communications player.

"GMT, during the due diligence phase, were impressed with the quality and skills of the Melita workforce and management and what they have managed to achieve over 16 years. They have confirmed their commitment to continue building on the strengths of Melita's leading position in the Telecoms & IT industry in Malta," Melita Cable said.

The statement said GMT is backing the existing management team led by Philip Micallef to build on an already strong local position particularly through the offer of voice telephony over the internet (VOIP) and bundled services.

"This acquisition confirms GMT's position as the most active private equity investor in Europe in the communications sector with eight cable TV/telecom investments and follows acquisitions including Casema (the Netherlands), CMI (Ireland), PEPcom (Germany), Invitel (Hungary), Karneval (Czech Republic), Internet Network Services (UK), and Mobifon (Romania)."

Joseph Gasan, chairman of Melita Cable plc said: "This multi-million foreign direct investment into Malta proves that, despite its size, Malta is an attractive telecommunications market for international players.

"Also, one must add that GMT's main reasons for making this major investment in Malta have been Melita's strong competitive position, its compelling service offering and strong brand, its low cost base, and its solid financial track record.

"This latest development in Melita's shareholding is another milestone in the company's history, which I believe will be beneficial to the company, its workforce and its extensive customer base."

Jeff Montgomery of GMT said: "Melita is a success story and has led the way in developing and innovating communication services in its region. I am absolutely delighted to be teaming up with such a highly capable management team led by Mr Micallef to drive the business through its next stage of growth."