Malta has established itself as a competitive platform for M&A transactions, which creates many new opportunities for ambitious entrepreneurs.
At the international level, M&A deals in Malta involve financial companies, pharmaceuticals, real estate, and telecommunications. Especially popular here are international companies involved in online casinos or online games such as poker, which are significantly limited in their capabilities in other EU countries.
Why is Malta attractive?
There are several reasons that make foreigners interested in buying a company in Malta. Firstly, you can register a company in Malta quite quickly and enjoy the same rights as a local company.
Secondly, capital, property, and dividends transferred abroad are not taxed, and non-residents are exempt from paying taxes to increase the market value of capital for certain share transfers.
In addition, one can easily transfer a company both to the island and back abroad without closing it.
A well-developed banking system, stable political situation, and the support of the local legislator complete the overall favorable picture for foreign businesses in Malta.
Malta M&A Regulation
There are several ways to acquire a business in Malta. For example, you can get shares from the current owners of the company; merge with the acquiree, or you can just buy company assets.
Acquisitions of companies whose securities are listed on a recognized stock exchange differ from those not listed. Listing Rules apply only to listed companies.
For mergers and acquisitions in Malta, foreign law can be used. But everything related to the transfer of ownership of shares will be regulated by local law.
There are zero restrictions on the company ownership by a non-resident shareholder in Malta. However, if the target company owns real estate, then the buyer must obtain permission to purchase real estate in Malta.
Before concluding an M&A transaction in Malta, it is supposed that the buyer conducts due diligence verification in his own interests. Also, you can not do without a financial audit. Usually, independent financial consultants are hired to conduct a thorough analysis of potential acquisitions. Based on the results of such an audit, the buyer will receive a detailed report, based on which he can conclude whether to buy a company in Malta or not.
Customer access to information
When you buy a company in Malta, you can obtain information about the object of purchase, but the level of access to it depends on whether the target object is a private company or a company listed on the stock exchange. In the first case, the buyer will be able to access only limited information - basically, the contents of the corporate website of the target object, as well as other information from an open online space. Therefore, the buyer should take care to make an additional request for documentation before the transaction. Again, it is in his own interests.
A completely different situation with a Maltese listed company. Such companies are required to disclose to the general public all information that may in any way affect the price. Such information is contained in the report of the issuer of the company. If the issuer provides confidential information to the buyer, then it is important to foresee that a confidentiality agreement is signed.
If you intend to register a company in Malta or interested in the M&A transaction process in Malta, experienced IQ Decision UK specialists will provide you with comprehensive advice on all matters. We are well aware of the Maltese law, and we have the expertise, which guarantees professional assistance in M&A transactions at all stages.
Get in touch by filling out the form on the website.