Melita shareholders have agreed to sell out to French and Belgian investment firms as the local telecom sector faces upheaval.
The decision, made public yesterday, comes months after the majority shareholder in GO, a rival telecom company, announced plans to sell its entire shareholding.
Melita’s new owners will be Apax Partners, a French private equity firm that manages funds in excess of €2.4 billion, and Fortino Capital, a Belgian venture capital company. The two firms will buy out GMT Communications, MC Venture Partners, Blackrock Communications and the Gasan Group. The price tag for the sale was not revealed.
Melita plc has an issued share capital valued at €12.2 million. Its primary shareholder is Melita Capital plc, with an issued share capital of €144 million. Earnings before tax are expected to supersede €31 million this year, up from €16 million seven years ago.
The telecom company offers cable TV, internet, telephony and mobile phone services. It has 110,000 unique subscribers in a market shared with GO and, to a lesser extent, Vodafone. The acquisition is subject to regulatory approval but it will spell the end of Gasan Group’s involvement in the telecommunications sector.
As Melita grows, we expect it to continue being a strong employer
Joseph Gasan, chairman of Melita, said: “I am delighted that Melita, which I founded 23 years ago, is now in a position, after a period of growth and transformation, to start a new phase under new ownership.” In their statement, Melita’s current shareholders said Apax and Fortino would bring more than 30 years of experience in the technology, media and telecom sector.
The two firms have investments in communication companies such as Numericable Belgium & Luxembourg, Cabovisao, Outremer Telecom, Telenet, Primacom and KPN. Melita chief executive Andrei Torriani said the transaction showed that the company was recognised as one of the more advanced players in Europe with converged fixed cable and mobile networks.
“As the company continues to grow, invest and roll out new offerings, we expect Melita to continue being a strong employer in Malta,” he said.
In July Melita’s rival GO hived off its property portfolio to a separate company, and a day later Emirates International Communications, which has a 60 per cent stake, announced the intention to sell its shareholding in the short term.
The substantial shareholding held by EIC, a subsidiary of Dubai’s Tecom Investments, means that any potential buyer would have to make an offering to the other shareholders as well.
GO is a listed company, and the sale by its principle shareholder could squeeze the smaller shareholders out and may also lead to delisting.
kurt.sansone@timesofmalta.com