HSBC approached by ‘a number of parties’ interested in buying its Malta shareholding

HSBC Bank Malta has announced that its majority shareholder has been approached by “a number of parties” interested to buy its 70% stake in the Maltese bank.

In a company announcement on Thursday, the bank said the prospective buyers have requested to conduct due diligence before confirming their interest.

Earlier this year, HSBC announced that its major shareholder was carrying a “strategic review” of its stake in the Malta branch. At the time, APS Bank, the Maltese church-owned bank, confirmed it was in talks to buy the 70% shareholding.

In Thursday’s statement, HSBC did not identify the parties that have expressed an interest but suggested there were “a number” of them and not just one.

“The Bank [HSBC Bank Malta] announces that it has been advised by its majority shareholder, HSBC Continental Europe, that HSBC Holdings has been contacted by a number of parties who have expressed interest in its shareholding in the Bank and have requested to conduct due diligence prior to confirming their interest,” the company announcement issued on the Malta Stock Exchange read.

The announcement added: “In this respect, HSBC Continental Europe has requested the Bank to seek authorisation from its shareholders to furnish and disclose information, including unpublished price-sensitive information, to bona fide offeror(s), the corresponding bona fide transferor and their respective advisers, as may be necessary.”

The sensitive information is needed to enable prospective buyers “make, confirm, withdraw or modify any offer(s) for a substantial shareholding” and to enable the transferor of the shareholding to “evaluate, negotiate and/or confirm any said offer(s)”.

According to Capital Markets Rules, HSBC Bank Malta is required to convene an Extraordinary General Meeting on the matter. Details of the EGM will be issued in due course.

“The majority shareholder has reiterated that no decisions have been made regarding its

shareholding in the Bank and that HSBC Holdings continues to consider a full range of options,” the company announcement said.

In a subsequent statement, HSBC Malta sought to allay fears over loss of client and employee confidentiality, insisting that the bank “will continue to comply with its banking confidentiality and data privacy obligations at all times”.

The bank said these are continuing obligations and will remain applicable even during any due diligence process that is undertaken.

HSBC has long hinted that it wants to leave Malta, even though company bosses have consistently denied the intention. The ‘strategic review’ falls squarely within HSBC’s international consolidation to concentrate on its business in the far east.