Portelli clan rupture deepens

A breakdown in business relations between Gozo developers Daniel Refalo and Mark Agius, known as Ta’ Dirjanu, has prompted negotiations to restructure their shared interests, placing their longstanding partnership with Joseph Portelli under increasing strain.

The Shift is informed that the principal fallout is between Refalo, a Comino beach concessionaire turned developer whose interests include DTX Holdings, and Agius.

Portelli appears to remain on good terms with both. However, sources familiar with the businessmen describe their years-long relationship as increasingly strained.

Sources close to the businessmen told The Shift that Refalo wants a complete business separation from Agius and no further dealings with him.

An announcement issued by Excel Finance plc confirmed that a substantial change in the ownership of their jointly held group is being negotiated.

Responding to media coverage concerning relations between its ultimate beneficial owners, the bond issuer said discussions were at an advanced stage to reorganise and consolidate shareholders’ interests.

The proposed restructuring would redistribute Refalo’s interest, held through DTX Holdings Limited, among CTJ Holdings Limited, Magius Limited, Margius Limited and Jogius Limited.

Completion remains subject to definitive agreements.

The announcement disclosed neither the price involved nor how the proposed transaction would be financed.

Excel said the discussions were taking place at shareholder level and did not affect the group’s operations, projects or ability to meet its financial and contractual obligations.

The statement followed The Shift’s revelation that Portelli and Refalo had withdrawn from Prax Concrete, the operator of an illegal concrete batching plant in a government-owned quarry in Kerċem, leaving Agius in control.

The Shift subsequently reported that companies represented by Refalo and Agius were opposing each other in court over a €700,000 promise of sale for a house in Xagħra.

Refalo’s DTX Properties is seeking completion of the transaction or damages. Blue Clay Hotels, whose directors include Agius, contests responsibility, maintaining that DTX failed to complete within the applicable deadline.

The claims remain contested, and the proceedings are ongoing.

Public borrowing and government leases

The proposed separation involves a group with substantial interests in residential development and government-backed rental income.

In December 2024, the three businessmen sought €50 million through an Excel Finance bond issue carrying a 5.4% coupon. Half the proceeds were earmarked to repay bank loans – €14 million to FIMBank and €11 million to Bank of Valletta – with the remainder intended to finance ongoing construction projects.

Their shared interests also include Excel Housing Ltd, which signed agreements with the Housing Authority in 2024 to lease about 100 apartments, mainly in Gozo, for social housing.

The Shift reported that the authority refused to disclose the contracts, citing commercial sensitivity. The arrangements came under scrutiny because of Gozo’s historically limited social-housing demand and then-housing minister Roderick Galdes’s separate agreement to buy a penthouse from Portelli. Galdes denied impropriety. He was forced to resign last January and barred from contesting the last general elections.

Excel’s restructuring announcement does not explain whether the proposed ownership changes would affect these government leasing arrangements.