Italian-owned firm EIP has bought the entire 8.93 per cent shareholding of Aberdeen in Global Capital, a far cry from the 48.5 per cent it originally had in its sights.

EIP now holds shareholding in Global Capital and its owner, Paolo Catalfamo, has been made chairman. Prof. Catalfamo said EIP was committed to place Global Capital on strong and sustainable long-term financial pillars.

The share acquisition comes just a week after the Malta Financial Services Authority allowed Global Capital’s shares and bonds to trade for the first time since April.

The MFSA had suspended the listing and trading as soon as news broke that Global’s majority shareholder, BAI Co. (Mtius), was allegedly embroiled in a banking scandal. Since then, EIP came forward interested in buying the 48.5 per cent shareholding. However, the deadline for the agreement to be confirmed lapsed.

Aggressive transformation strategy

The acquisition of shares by EIP and its confirmation it will still subscribe to the rights issue are important for Global Capital. The issue must raise a minimum of €14 million and a maximum of €30 million.

Come June, Global Capital has to repay €14 million outstanding from its €17 million unsecured bond issued in 2006, which has a coupon rate of 5.6 per cent. It has an authorised share capital of just €8.7 million (paid up: €3.8 million) and, according to its shareholder circular, wants to increase this almost fivefold (466 per cent) to €40.8 million.

The Global Capital group reported a profit after taxation of €222,671 for the year ended December 31, 2014, compared to a prior year loss after taxation of €3,661,194. Between 2010 and 2013, the group lost €18.6 million.

The group’s encouraging financial turnaround comes as a result of an aggressive transformation strategy that kicked off in the second six months of 2014 by a new management team led by CEO Reuben Zammit.