Despite two separate attempts involving five different bidders to agree a privatisation for Malta Super Yacht Services (MSYS), the move to find a new operator for the 30-year concession has been stopped by the Maltese government. There is now no time set for when MSYS might transfer to the private sector, though the government says the move can go ahead, "when they receive a high enough offer."

It was on the grounds of an inadequate offer that the privatisation was stopped despite two bidders having been short-listed. However there is wide speculation that while that may have been a contributing cause, a row involving parties other than the short-listed bidders was actually the reason the government took the action it did. Controversy reigns over all this with nobody confirming any of the facts. Supposedly, SB has learnt, Palumbo, the Naples-based ship repair yard that has gained the Malta Shipyards concession, and the MIDI consortium which successfully bid for Manoel Island Yacht Yard, have allegedly colluded to put in a higher bid than those made by the short-listed bidders.

Both the two short-listed bidders, Melita Group and Hili Group, reportedly offered around €22m for the 30 year concession. The Maltese government described this sum "as unsatisfactory". The Maltese finance ministry has denied that such collusion took place and also that Palumbo and MIDI were disqualified from bidding for MSYS. It is unlikely that the actual facts will emerge any time soon but in the meantime MSYS stays in the public sector and has a full order book until May as well as a number of contracts beyond that.


Superyacht Business / David Robinson, 10 February 2010