Air Malta - Privatisation of Osprey Insurance Brokers Co. Ltd.

Request for Proposals: Sale of Shares in Osprey Insurance Brokers Co. Ltd.


Osprey is a wholly owned subsidiary of Air Malta and was originally set up in 1995. It is enrolled in the Brokers’ List as maintained by the MFSA. Osprey handles all the insurance requirements of the Air Malta Group of companies (hereinafter referred to as “Air Malta Group”). Osprey is engaged in undertaking insurance broking services for third party clients outside the Air Malta Group. Furthermore, Osprey maintains a significant book of business on most other insurance classes. Osprey handled over €5 million in insurance premiums in its financial year ended 31 March 2013, and is amongst the top brokers in Malta in terms of premium income. Osprey has a wealth of inhouse specialist expertise in the aviation sector built and nurtured over the years, augmented by an established network of outsourcing and international brokerage arrangements.

Osprey is a small operation that has returned a steady stream of profits over the years in its capacity as a support adjunct of the Air Malta Group. Air Malta believes that Osprey possesses further potential which may be unlocked by the right strategic investor once it is carved out of the airline’s portfolio. Hence, the main motive behind the privatisation of Osprey is to introduce a strategic investor to the Company who has the capability to further exploit Osprey’s business development potential in the aviation insurance business.

By virtue of this RFP document, Air Malta is seeking to sell, in a single transaction, their entire shareholding in Osprey. Conscious of the growth potential of Osprey, Air Malta is inviting proposals from interested parties with the capability of deriving synergistic value from the acquisition of this insurance brokerage operation. Air Malta is seeking an attractive offer within a structured transaction timetable while ensuring that Osprey remains commercially active in the relevant sector.

 

Purpose and Objectives

The Privatisation Unit is tasked with securing the transfer of shares in the Company.  Whilst the transaction has as its principal objective the sale of shares in Osprey, the Privatisation Unit is also seeking to solicit the highest quality proposals.  In so doing, the Privatisation Unit expects the following benefits to be attained from this share sale process:

  • Ensure the continuous, reliable and timely aviation insurance services to Osprey’s current and future client base;
  • Seek market development opportunities outside the Company’s current activity domain;
  • Seek growth opportunities in other classes or markets of insurance currently not actively pursued by Osprey;
  • Bring in new competencies in key functions such as marketing and business development, implementation of new management systems, acquiring market knowledge and building up a network of contacts within the aviation industry.
  • Improve the operational efficiency of the Company;
  • Secure the best possible terms for the existing employees of the Company;
  • Maximise the benefits to the Maltese economy through increased investment opportunities;
  • Maximise the proceeds from the sale of the Shares.

Accordingly, the RFP is inviting applications from interested parties to apply for the purchase of the said Shares held by Air Malta in Osprey, subject to a number of terms and conditions as set out in the RFP document.