Mediterranean Maritime Hub (MMH) has reached a deal to sell a 49 per cent stake in its holding firm to a group of local investors.
The deal will ease pressure on MMH as it works to secure funding to repay its upcoming bond obligations.
In a company announcement issued on Saturday, MMH Finance said that its guarantor – MMH Holdings Limited – has entered into an investment agreement with three new investors: Sajal Holding Limited, Exult Holdings Limited, and EBCON Investments Limited.
The three firms are Malta-registered.
Sajal Holding is owned by French national Francois Raymond Janvier Giordano and Maltese investor Miguel Zammit Tabona; Exult is owned by Charles, Karl, Jonathan and Mark Cassar; and EBCON is owned by fish-farming entrepreneur Saviour Ellul.
Money for bondholders
Under the terms of the agreement, these new investors will acquire a 49% minority stake in the Guarantor, while existing shareholders, led by Paul Abela, will retain a 51% controlling interest.
Talks with the new shareholders have been progressing for months. The share acquisition will require the government’s sign-off, as MMH operates from public land.
The fresh capital injected by these new partners, alongside additional liquidity from existing shareholders, is earmarked to fund the repayment of the company’s bond and its related coupon, due in October 2026.
An outstanding €15 million, 4.8% unsecured bond issued by MMH is due to mature in October.
“The Company welcomes this positive development, and looks forward to working with the new shareholders within the Guarantor,” MMH said in a statement.
Company directors will meet on April 29 to review and approve audited financial statements for the 2025 financial year.
MMH operates the former Malta Shipyards site in Marsa through a government concession awarded a decade ago. The company ran into financial trouble in recent years and has been seeking external investors for a number of years. At one stage the firm also entered into talks with the government to explore the possibility of terminating its concession.
Last year the Malta Stock Exchange suspended trading in MMH bonds because the firm did not publish its accounts in time, in breach of listing rules.
Auditors warned in those accounts – published in December – of significant doubt about the company’s ability to continue operating unless external financing to cover bond repayments was sourced.
A financial analysis summary the firm published in February indicated that the company would be able to repay bondholders if it secured the 49% investment.
The company’s statement on Saturday indicated that it is also close to ending a legal dispute with state industrial parks entity INDIS. INDIS was threatening to sue after MMH fell behind on ground rent payments and failed to deposit an increased bank guarantee linked to its 2016 concession.
MMH says its guarantor “has since effected payments and provided the increased bank guarantee.”
