The proposed buyout of Mediterranean Maritime Hub (MMH) by Virtu Holdings Limited and LTV Developments Ltd has fallen through, an announcement on Tuesday by MMH Finance plc stated.
This comes after in January 2023, Paul Abela, the ultimate beneficial owner of MMH Group, signed a letter of intent with Virtu Holdings and LTV Developments 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 had 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 would take over the operations of the group, or a 70 per cent shareholding in any newly incorporated company/ies which would take over all or a substantial part of the operations, business, assets, and activities of MMH Group.
The conditions for the agreement included all necessary authorisations from local competent authorities for it to take place, in line with MMH’s obligations arising from its temporary emphyteusis of its premises, formerly the site housing Marsa Shipbuilding.
Just over a month ago, the group had announced a reduction in the size of its Board of Directors, as part of its restructuring plans ahead of the proposed transaction.
However, in its latest announcement, MMH Finance plc, the group’s financing arm, stated that the involved parties have decided “not to further pursue negotiations” on the proposed transaction, and have thus not renewed the terms of the conditional share purchase agreement.
It was also stated that MMH Holdings Limited, the Guarantor, is planning to refer to authorities to evaluate the current and future capital investment to maximise the use, output, and flexibility of the MMH. This will also be done with the aim to ensure that MMH Holdings will be in a position to continue to honour its commitments “as and when they fall due.”
MMH Finance said that it will keep the market informed of any other developments related to the above.
In the finance company’s Annual Report for 2023, released last April, the involved parties had stated that they were “optimistic” that an agreement on the contracts for the proposed transaction would be concluded within the following months.
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.
