Following an intensive six months of negotiations with some of the world's leading private equity firms, Joseph Gasan, chairman of Melita Cable and now a minority shareholder in the company, has every reason to feel upbeat.

Last week, GMT Communications Partners (GMT), the leading European independent private equity group focused exclusively on the communications sector, signed an agreement to acquire Melita Cable plc from Nasdaq-listed Liberty Global and the Gasan Group of Companies.

Commenting on what is probably the largest foreign investment in a private Maltese company to date, Mr Gasan said: "I believe the deal we have just concluded, which was also featured in the London edition of the Financial Times last Wednesday and other leading economic newswires around the world, is indeed the biggest foreign investment in a Maltese private company.

"It is a landmark in Melita's history because it is proof of Melita's strengths as a leading triple-play communications provider, the high calibre of its workforce and management, and the quality of its services in TV, broadband and now also fixed line telephony.

"For over six months, during the thorough due diligence process, we had meetings with various interested investors, who were impressed with the company, its performance and the people working here.

"This investment is also testimony to Malta's attractiveness as an investment location due to the quality of its workforce and the fact that it forms part of the EU."

Mr Gasan explained that, assisted by advisors ABN AMRO and a team of international and local accountants and legal firms, Melita selected GMT Communications Partners' offer, after an auction between a number of large investment companies.

"One of the main reasons why the previous shareholders, that is Liberty Global and the Gasan Group, opted to sell to London-based GMT Communications Partners, is the fact that this investment group is focused in Telco and media companies in Europe, where they have extensive investments in 17 other EU countries.

"The deal with GMT Communications Partners did not hinder Melita's progress in its operations. Over the past six months Melita continued to consolidate its position as a leader in home entertainment, has grown considerably its broadband business and has seen incredible growth in fixed-line telephony after it launched this service under the brand name Hello in November 2003."

Mr Gasan emphasised that Melita was the "clear" leader in providing top quality TV to over 100,000 subscribers, and pointed out that Maltacom's (now Go) entry into the TV market actually increased Melita's TV business.

Melita is soon to announce more leading edge innovations and services as the company continues to reap the renewed interest that competition has created.

Melita is also one of the leaders in the broadband sector and projections are very positive; Onvol is a leading brand in this sector, providing reliable, cutting edge Internet services to thousands of local households.

The most recent success story for Melita is that in the fixed line telephony market, which the company entered formally last November.

"The demand for Hello products is impressive and beyond our expectations," Mr Gasan said. "In less than seven months we are close to hitting the 20,000-subscriber mark, the order pipeline has never been this full.

"The results achieved by Melita in recent years are due mainly to the innovative spirit of its workforce and the speed with which we take products to market.

"The recent launch of Melita ME, the first 'triple play' bundles to be launched locally, proves the swiftness of the company to gauge the market realities of the time. Through Melita ME we have provided customers with a simple (one bill), convenient (one contact number) and value-for-money (savings) offering. As anticipated the demand for these bundled packages has been extraordinary."

Mr Gasan said the outgoing shareholders, the Gasan Group and Liberty Global, were very pleased with the return on investment made on this transaction. However, he expressed his satisfaction that the company was being taken over by a dynamic private equity firm that specialises in telecoms and has seen great potential in Melita.

"I am particularly thrilled that the new major shareholders intend to undertake the next expansion phase of Melita with the present workforce and management team led by CEO Philip Micallef," he said.

But the most satisfying aspect, Mr Gasan pointed out, was that all stakeholders stand to benefit. The new investors, the previous investors, the workforce and management, Melita's subscribers and Malta will gain from this deal that will continue to project the company as one of the leading telecoms companies in Malta.

According to Wednesday's UK edition of the Financial Times, GMT paid €170 million for Melita's shares. Is this cash going to the shareholders and, if so, would more money be invested in the company? What are the future plans in terms of investment?

The outgoing shareholders, Liberty Global and Gasan Group, will pocket the proceeds from the transfer of ownership. The new owners of Melita Cable plc, of which the Gasan Group will remain a minority shareholder, have a concrete plan for the future that does include an investment plan.

"In the last five years the company has grown from strength to strength," Mr Gasan said. "The company's solid performance has attracted the interest of international investors who have an aggressive growth plan for the future. There is no doubt that the market we operate in is very dynamic and, as a result, requires the continuous investment of its shareholders.

"What is clear however is that the new owners have bought a company that is financially strong with a very attractive growth potential. The investment in people, new technology, content and new systems would have been required regardless of the owner.

"Melita is a formidable player in the telecoms market and will continue to carve its important space within the sector in the future.

"Guiding Melita for 16 years has been a challenging experience. My involvement in the company will be sustained and we look at the future with great optimism."