NEWS | Wednesday, 18 July 2007

Tug Malta privatisation

Shares sold at 3.42 times net asset value

Gerald Fenech

The sale of government’s 73.72 per cent shares in Tug Malta to Rimorchiatori Riuniti spa has brought in 24.7 million Euros or 3.42 times the net asset value, a considerably good deal under any standards.
The agreement between government and the Italian company is to be signed today and after that, the privatization documents are to be tabled for scrutiny in the House of Representatives.
Apart from the rather hefty price tag, Rimorchiatori SPA have guaranteed jobs for all employees at Tug Malta for the coming 10 years and are also investing 22.4 million Euros over 5 years on two new tugs. Further conditions of the agreement are that the company employs locally trained sea cadets, that tugs are to remain registered in Malta and that Malta Shipyards are utilised for repairs and refurbishment of any of the company’s vessels and tugs.
Established in 1922, Rimorchiatori Riuniti Spa have been involved in the offshore and spot market services since the late 1970’s. The group’s pre-tax profit averaged 18 million Euros between 2002 and 2006 whilst total capital employed in vessels as at 31st December 2006 amounted to 114 million Euros.