MMH confirms MaltaToday story it wants to pull out of ship building concession

Company announcement by Malta Maritime Hub confirms government considering bail out on Marsa shipbuilding land

By: maltatoday.com

Nov 11 2024
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MMH confirms MaltaToday story

A company announcement by the Malta Maritime Hub has confirmed a MaltaToday report which revealed it wanted to pull out of the ship building concession.

In its company announcement, MMH Holdings confirmed that on 23 September, 2024, the grantor, INDIS Malta Limited, wrote to the guarantor, as the grantee of the site today known as the Mediterranean Maritime Hub, and informed that “the Government is cognizant of recent developments in the maritime sector and understands the need for optimisation of the site in alignment with the regeneration plans for the Grand Harbour area”.

INDIS Malta Limited added that “... following deliberations with the Cabinet, we wish to inform you that INDIS is prepared to engage in formal discussions with MMH Holdings Ltd regarding the possibility of pursuing a termination of the concession, in accordance with the provisions set out in the Deed”.

On Sunday, MaltaToday revealed government will be setting out the way forward to take back a public concession that has failed to deliver its owners the level of business they had first expected less than a decade ago.

This newspaper revealed the Labour administration has agreed to have its industrial parks regulator, INDIS Malta, commence negotiations with MMH Holdings, the operators of the former Malta shipbuilding site, to terminate the 65-year concession for the land they took up in 2016.

With MMH Holdings having failed to obtain regulatory clearance to sell their concession last year to interested parties, and a hefty €15 million bond that is nearing repayment, the government has agreed to allow INDIS to start talks that can deliver a “fair and balanced” outcome for both sides.

The company announcement on Monday also explained how on 17 October 2024, MMH Holdings Limited informed INDIS Malta Limited “it is equally prepared to engage in formal discussions with INDIS and the Government of Malta on how the current emphyteutical concession may be terminated in accordance with the provisions set out in the Deed, while remaining mindful of the fact that the Grantee has ongoing commitments, including to clients and the financial market”.

MMH Holdings Limited also proposed to the INDIS “purely on a ‘without prejudice’ basis – to immediately hold one or more preliminary meetings in order to establish the form of the proposed transaction”.

To date, no other further formal communications have been exchanged.

“The Company wishes to reassure the general public that, if and when there are any further developments, including if any commitment is signed between the Guarantor and the Government of Malta and/or INDIS Malta Limited, it will promptly inform the general public, in the interest of transparency and in compliance with its ongoing obligations in terms of the Capital Markets Rules. Meanwhile, the Guarantor and its operating subsidiary, MMH Malta Limited, will carry on operating in a normal manner, in order to ensure that all financial and commercial obligations are honoured in full,” the statement concluded.