Twenty Per Cent Of Vodafone Malta Shares Could Be Available For Investors

by Lisa Ugur, Tax-news.com, London

04 May 2001

Maltese investors could see a profitable opportunity as national telecommunications carrier Maltacom is considering selling its 20 per cent stake in Vodafone Malta Ltd in an initial public offering (IPO) on the Malta Stock Exchange.

Vodafone Malta Limited is Malta’s mobile phone network operator and service provider. The company has been operating since 1990 and is a joint venture between the UK's Vodafone Group Plc, which holds 80 per cent of the share capital, and Maltacom Plc, holder of the remaining 20 per cent.

Maltacom chairman Maurice Zarb Adami has said that the company is in discussions with Vodafone Malta to see how best to sell its 20 per cent stake. According to the national plan on telecommunications, Maltacom has six months from when it started to operate its mobile network to divest itself of the 20 per cent stake it has in Vodafone. Maltacom's mobile network, Go Mobile, was lauched at the beginning of December 2000 so the company is now hurrying to sell the stake, given that the six month period expires at the beginning of June.

The current volatility on the Malta Stock Exchange and the level of uncertainty in the market is forcing many companies who are considering going public to put their plans on hold. A number of companies which have been considering floating on the Malta Stock Exchange have delayed their plans until they see a possible turnaround in the local market. With share prices going down rather than up, company valuations are often poor. In spite of the negative market conditions, Mr Zarb Adami said Maltacom still wanted to issue the Vodafone shares on the stock exchange, but might have to wait longer than the June 1 deadline.

He told the Maltese press: 'We might be asking for an extension, both in the interest of Maltacom and Vodafone. The IPO will have to take place at the best possible time to give value to Vodafone and Maltacom', adding that it was not clear what would happen if Maltacom decided not to divest its shares by June 1.

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