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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 (“Melita”), the leading provider in television, broadband and telephony services in Malta, from Nasdaq listed Liberty Global and the Gasan Group of Companies.
The Maltese television, broadband and telephony services sector has grown rapidly in recent years, due to an increasing customer base and a continually developing product offering. Melita’s management team’s experience in driving forward and maximising growth opportunities include heavy investment in Melita Cable plc to expand and upgrade its network and to develop new services. It is now regarded as the leader in its field and has continued to grow despite fierce competition in this sector.
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 and have confirmed their commitment to continue building on the strengths of Melita’s leading position in the Telecoms & IT industry in Malta.
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).
GE Commercial Finance was the sole debt arranger for the transaction. NM Rothschild and Sons Ltd. advised GMT on the transaction; Weil, Gotshal & Manges and Cameron Mckenna provided legal advice to GMT. ABN Amro advised the vendors Lovells LLP were the legal advisors to the vendors.
Joseph Gasan, Chairman of Melita Cable plc commented: “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 commented: “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 Philip Micallef to drive the business through its next stage of growth.” |
