Following a Cabinet decision, the Ministry for Investment, Industry and Information Technology approved the recommendation of the Malta Freeport Corporation and the Privatisation Unit for the Corporation to sell its shares in Oiltanking Malta Limited.
On closing Malta Freeport Corporation will receive a consideration of EUR29.6 million (Lm12.7 million) for its 30 per cent shareholding in Oiltanking Malta Limited, compared to the nominal value of the shares which is Lm450,000 (EUR1,048,000). The sale is being undertaken jointly with Oiltanking GmbH who is also selling 15 per cent of the shares in Oiltanking Malta Limited, thus reducing its shareholding from 70 per cent to 55 per cent. The parties are currently negotiating the terms and conditions of the agreement and execution of the transaction is obviously subject to this agreement being reached.
Malta Freeport Corporation appointed Oiltanking GmbH to act as its agent for the sale of its shares in Oiltanking Malta Limited as the sale is part of a larger divestment strategy by Oiltanking GmbH, which includes the sale of a minority shareholding in the terminal facilities in Amsterdam, Malta and Singapore. 3i Infrastructure Limited, an investment company that provides financial and strategic support to infrastructure businesses, has been identified as the preferred bidder for the transaction and the parties are currently negotiating contractual terms. 3i Infrastructure Limited is a Jersey-incorporated investment company, admitted to the London Stock Exchange in March 2007.
Oiltanking Malta Limited was established in 1989 by Malta Freeport Corporation and Oiltanking GmbH to develop a common user oil terminal within the Freeport Area, on a site leased from Malta Freeport Corporation. The company currently operates tanks with a capacity of 486,000 cubic meters, which will increase to 526,000 cubic meters once the two tanks currently under construction are completed later this year.
The divestment by Malta Freeport Corporation of its entire 30 per cent shareholding in Oiltanking Malta Limited is in line with the government’s policy for public sector entities to perform the role of regulator rather than investor or operator in commercial sectors.
Malta Freeport Corporation will continue to regulate the activities of Oiltanking Malta Limited as licensor and landlord. Oiltanking GmbH, as the majority shareholder, will continue to be the managing and operating partner of Oiltanking Malta Limited and the terminal will continue with the present strategy to act as an independent tank storage provider for petroleum products.
Oiltanking GmbH, a division of the privately held Marquard & Bahls AG, is one of the largest independent tank storage providers for petroleum products worldwide, operating 73 terminals in 21 countries with an overall capacity of 12 million cbm.