MIMCOL’s creation in the late 1980s is owed to a shift in Government policy towards a more liberalised and market-oriented economy that encourages competition, and minimises state participation, in as many sectors of the economy as possible. As a natural consequence of this shift in outlook, Government embarked on a mission to divest itself of the large number of companies in which it held a direct investment at the time. These investments, which were concentrated in the manufacturing and services industries and often operated in competition with private interests, were mostly loss-making and were responsible for a considerable drain of state funds.
Against this backdrop, Malta Investment Management Company Limited (MIMCOL) was set up and registered on 21 April 1988 as a limited liability company with the main objectives to manage, restructure and selectively divest from the portfolio of state-held investments; as well as to promote private sector, cost-effective business practices across various Government owned companies and entities.
At the same time, MIMCOL’s twin company, Malta Government Investments Limited (MGI) was set up to act as ‘holding company’ and take on (as agent for the Government) the portfolio of circa 78 investments previously held on Government’s behalf by the Malta Development Corporation (MDC). With this move, MDC returned to its original role of a trade and investment development agency, while MIMCOL embarked on its task to devise and implement a programme to rationalise MGI’s newly-acquired portfolio.
To achieve its remit, MIMCOL adopted a range of portfolio-management strategies, at the time considered quite innovative in the local context, which progressively led to the dissolution and liquidation of non-viable companies with no commercial prospects; and the profitable divestment of non-strategic investments with commercial potential.
At this point MIMCOL’s focus turned on the remaining companies, most of them deemed of strategic national value but whose inefficient operations were reflective of monopolistic environments free of competitive pressures. These investments that were thus deemed unripe for privatisation at that juncture remained under MIMCOL’s wings and over the years underwent extensive reorganisation and restructuring with the aim of improving performance, service delivery and organisational effectiveness. One by one most of these entities were groomed for privatisation and sold off, and today the list of MGI investments under MIMCOL’s close scrutiny has gone down to around 11 (excluding MGI companies falling under the responsibility of other ministries and investments held directly by Government).
Over time, MIMCOL’s scope of activities evolved beyond the management of its own portfolio of investments. Its proven ability to pull through share sale transactions was recognised and tapped throughout the implementation of Government’s privatisation programme launched in 1999. For a number of years now MIMCOL has been actively involved in a lead advisory capacity to the Privatisation Unit and has played a forefront role in the privatisation of various high-profile state entities. MIMCOL has also been involved in numerous high-level specialised assignments such as strategic reviews and plans, initial public offerings, private-public partnerships, and build, operate and transfer transactions for various parastatal companies and corporations.
Time and again over the span of its existence, MIMCOL’s experience and technical expertise were also noticed by various Ministries (including the Office of the Prime Minister) and Government agencies, and MIMCOL was called upon to carry out a wide spectrum of ‘extra-curricular’ assignments whose scope ranges from abattoir and green market (pitkali) services reform to privatisation plans and policies in the yacht marinas sector; from high profile property acquisitions and disposals to representations in a negotiating capacity at international fora; from subsidiaries’ debt restructuring to debt collection from foreign sovereign debtors, and so on.
Today MIMCOL falls under the responsibility of the Ministry of Finance, the Economy and Investment and offers its business advisory services not just to its own subsidiaries, but also to many other companies, corporations and entities for which the Ministry is responsible.
MIMCOL has been increasingly entrusted with the implementation of special initiatives that are of a longer term nature than the advisory assignments that have traditionally been MIMCOL’s bread and butter. These include the creation of a venture capital fund, the Grand Harbour Regeneration project and the letting of four floors of the Dar Malta property in Brussels. MIMCOL has also been designated by Cabinet as the National Contact Point for the EU Competitiveness and Innovation Programme.
Whereas it was originally tasked to rationalise and shape up a stagnant portfolio of investments, over time MIMCOL evolved into a trusted business advisor to state entities and manager of state-sponsored initiatives. This shows how, as a small versatile entity, MIMCOL has managed to reshape itself to remain relevant as its backdrop changed over time.