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Kurt Sansone
Government and Banco di Sicilia have overcome the impasse over the latter’s minority shareholding in Bank of Valletta and both entities have reached an agreement over the joint sale of their shareholding to a strategic investor, MaltaToday has learned.
The agreement, in the form of a memorandum of understanding, has set the ball rolling for the complete privatisation of BOV, which is already partially privatised. The general public owns 60 per cent of the shares in BOV, Government has a 25 per cent stake while Banco di Sicilia has 15 per cent shareholding.
The Sicilian bank had acquired its minority shareholding when BOV was set up back in the seventies as part of the Labour government’s strategy to rope in a foreign investor. Over the years the Sicilians provided little if any added value to the bank and their significant minority stake made it difficult for government to sell out to a strategic investor.
Sources in the financial sector told MaltaToday that Government and Banco di Sicilia have signed a memorandum of understanding by which they agreed to initiate a process leading to the joint appointment of an independent financial advisor. Appointing a financial advisor is the precursor to eventual privatisation.
Government and Banco di Sicilia have also agreed to jointly sell their shareholding to a strategic investor, which is the same philosophy adopted by Government for the privatisation of Maltacom.
BOV was the first public company to be listed on the Malta Stock Exchange in 1992. Government reduced its shareholding to around 25 per cent in 1995 by issuing 12,000,000 shares to the public.
The news comes hot on the heels of Malta Freeport’s privatisation this week, which saw French shipping giant CMA-CGM buying Government’s shareholding and obtaining a 30 year lease to operate the terminal at Birzebbuga. Government will be pocketing more than Lm145 million over 30 years from the Freeport privatisation.
Minister for Investments Austin Gatt, responsible for privatisation is expected to put all documents related to the Freeport privatisation on the Table of the House tomorrow for examination by Parliament.
kurt@newsworksltd.com
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