Melita in debt refinancing effort

No auction for sale of company being carried out

Telecommunications group Melita has denied having been put up for auction, although it confirmed that a refinancing process of its debt is underway.

A first round of “bidding” has been completed for the Melita group of companies, which offer cable TV, broadband internet, fixed line telephony, and mobile voice and data services.

The Melita Group, formed in 1991 and headquartered at the Gasan Group’s offices in Mriehel, was said to be valued up to €300 million according to

The company has total assets of €96 million, according to its 2012 figures, when it posted a €7.67 million profit before taxation. It has some €65 million in total debts.

No announcements were made identifying participating bidders, but the operator is understood to have attracted interest from private equity firms and telecoms groups.

Melita represented 48.6% of the broadband market at the end of 2013, claiming 70,100 subscribers at that date.

“The refinancing process is underway,” Melita said in a statement. “It has involved many international lenders. As part of and in support of the process, a valuation of the business was conducted within which several offers have been received.

“In contrast to what has been reported, no auction sales process for sale of the company has been initiated. The company remains focused on completion of the refinancing process to support its ongoing success and rapid growth.”

Melita’s main shareholders Joseph Gasan of the Gasan Group, Jeffrey Montgomery and Massimo Prelz of the GMT Communications private equity firm, Robert Savignol and James Wade of the M/C Ventures Partners investment firm.

In 2010, GMT, M/C Ventures Partners, Gee Five, and Grand Canal Capital Limited transferred their shares to the Superholdco Lux S.a.r.l. company in Luxembourg, which is owned by the four main shareholding interests.


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