The acquisition of Tug Malta will provide the Rimorchiatori Group with an excellent opportunity to come back to a market it had abandoned years ago, according to Giovanni Delle Piane, president of Rimorchiatori Riuniti SPA.

Mr Delle Piane was speaking during the signing ceremony of the Tug Malta share sale agreement between the company and the government.

"It is our aim to have another success story here in Malta", he said. The government announced on Monday it had sold its shares in Tug Malta Ltd to the Italian company Rimorchiatori Riuniti Genoa Spa, thus privatising the company set up in the 1980s.

The government had a 73.72 per cent shareholding (1,080,000 shares) in the company, worth €7.22 million, and its stake in Tug Malta was sold for €24.7 million, or 3.42 times the net asset value. The signing ceremony was presided over by Investments Minister Austin Gatt who said that over the past four years the government pulled out completely of the maritime sector. "Four years ago the government controlled most of the maritime sector as it owned the Freeport, Sea Malta and Tug Malta. We believe these areas should be left to the private sector. This is essential if we want to have a competitive economy," Dr Gatt said.

Mr Delle Piane said the company is strongly committed to invest and develop harbour towage, offshore towage and international shipping, pointing out that the company has a sound financial base.

He said Rimorchiatori Riuniti will invest over €22 million in two new tugs, and shall also purchase equipment in order to upgrade some of the existing tugs in order to make them more versatile.

Mr Delle Piane said: "We intend to form a subsidiary that will acquire a newly- built offshore vessel, for a value of about €40 million, that will become the flagship of the whole group.

In fact, this vessel is one of the most powerful vessels in the Mediterranean, and is being built by the Spanish 'yard Armon SA. This is proof of our willingness to develop and invest further in your beautiful island, Malta."