Relations with Vodafone

I refer to the letter "Cosy with Maltacom" (November 12) by Maurice Zarb Adami, former chairman of Maltacom (until last May). Maltacom plc wishes to put on record certain facts:

The sale of Maltacom's 20 per cent shareholding in Vodafone Malta Ltd was made on August 1, 2003.

Vodafone Group paid €30 million in cash for Maltacom's 20 per cent shareholding in Vodafone Malta Ltd. Concurrently, Maltacom plc as shareholders in Vodafone Malta Ltd approved the financial statements for year ending March 2003 and, prior to exit of Maltacom from Vodafone Malta Ltd, our company received a dividend of Lm308,000. Maltacom was assisted in this transaction by Rothschild and Bank of Valletta plc as its financial advisers. The advice on the final valuation of Maltacom's shares in Vodafone Malta Ltd on disposal was given by these financial advisers who were actively involved for 20 months in the process.

On July 21, 2003 Maltacom and Vodafone Malta Ltd had signed an agreement which settled several long outstanding disputes between the two companies. Some of the issues were subject to judicial and administrative proceedings before the Malta Communications Authority, the Telecom Appeals Board and the Maltese courts. Maltacom received from Vodafone Malta Ltd settlement in respect of past use of infrastructure and supply of services and reached a commercial agreement on the future use of infrastructure and certain services. Other bilateral claims were also settled.

Through the said agreement, both parties undertook to resume an appropriate commercial and technical relationship.

In the meantime, Go Mobile, the fully owned subsidiary of Maltacom plc providing a mobile phone service, reached a number of roaming agreements with members of the Vodafone Group including the United Kingdom, Italy and Germany. Other agreements are in the pipeline and the effect of all this leads to a new revenue stream to Go Mobile and the Maltacom Group.

The agreements with Vodafone Malta Ltd on the settlement of claims and with the Vodafone Group on the disposal of Maltacom's 20 per cent shareholding in Vodafone Malta Ltd together with a mutual arrangement regarding operational aspects such as roaming, gave and will continue to give a positive financial contribution to the Maltacom Group.

Maltacom will not comment on other issues raised by the writer relating to regulatory affairs and the local telecommunications scenario.