MMH Holdings Limited, the holding company of Mediterranean Maritime Hub (MMH) has decreased the size of its Board of Directors as part of the preparations for a 70 per cent buyout of its shareholding.
In an announcement made by its finance company, Mediterranean Maritime Hub Finance plc on Tuesday (today), MMH stated that following the Annual General Meeting held earlier this month, Ann Fenech, Sergio Vella and Joshua Zammit requested not to be reappointed to the Board of Directors of MMH Holdings Limited.
As from 3rd June 2024, the Board of Directors is thus made up of Angelique Abela as Executive Chair, Louisa Abela and Paul Abela Jr.
From left: Former MMH Non-Executive Directors Ann Fenech, Sergio Vella, and Joshua Zammit / MMH
This comes after in January 2023, Paul Abela, the ultimate beneficial owner of MMH Group, signed a letter of intent with Virtu Holdings Limited and LTV Developments Ltd to transfer his 70 per cent stake in the maritime, oil and gas servicing company.
MMH Group provides offshore and shore-based logistics to the marine and oil and gas industries, as well as technical services, supply chain management and human resources to support the same industries.
Virtu Holdings Limited is the holding company of Virtu Maritime Limited Group, which operates and charters express vehicle and passenger ferry services, including those in Malta, Gozo, and Sicily. LTV Developments is wholly owned by Francis Busuttil & Sons, one of Malta’s leading food distributors.
The two companies proposed to either take on a 70 per cent shareholding in MMH after the completion of a restructuring pursuant to which a new operating company incorporated will take over the operations of the group, or a 70 per cent shareholding in any newly incorporated company/ies which take over all or a substantial part of the operations, business, assets, and activities of MMH Group.
The conditions for the agreement include all necessary authorisations for the transaction to go ahead from local competent authorities, in line with MMH’s obligations arising from its temporary emphyteusis of its premises, formerly the site housing Marsa Shipbuilding.
In its latest announcement MMH Group confirmed that the smaller size of the Board of Directors forms part of the group’s restructuring plans ahead of the proposed transaction.
In the finance company’s Annual Report for 2023, released last April, the involved parties stated that they are “optimistic” that an agreement on final definitive contracts can be concluded “in the coming months.”
The change in ownership would be completed within a few months from the date when the aforementioned conditions are addressed and approvals from legal authorities are obtained.
During 2023, a year in which it slowed down the development of its site, MMH Group recorded a pre-tax loss of €205,229. Total investment by the group in the site at cost at the end of 2023 reached €41 million.
