APS Bank confirmed for the first time on Thursday that it is pursuing the acquisition of the 70.03% stake in HSBC Bank Malta currently held by HSBC Continental Europe and has submitted a non-binding offer.
Earlier on Thursday, HSBC Malta said a number of bidders had shown interest in acquiring its shares and it would be convening an extraordinary general meeting to obtain shareholder approval to allow the interested parties to conduct due diligence checks and take negotiations to the next level.
Times of Malta last September revealed that talks between APS and HSBC’s global shareholders had been underway for more than two years. At the time APS bank CEO Marcel Cassar said the bank owed it to its shareholders to explore opportunities for growth. HSBC Bank Malta had said it was unaware of the talks - since they were being held with the parent company.
On Thursday, APS said it is being assisted in the acquisition process by Alvarez & Marsal as lead financial advisor, and Ganado Advocates as legal counsel. Other advisors are lined up to join once work on a potential transaction, including any due diligence exercise, unfolds in due course.
"During this period, the bank’s board of directors and management will be engaging with their various stakeholders to help inform them further about the rationale and merits of such an acquisition."
The biggest shareholders in APS are the Archdiocese of Malta 55.2% and the Gozo Diocese 12.7%.
"As shown consistently in recent years, the bank has been growing steadily, improving efficiencies, services and revenues thanks to the significant transformational investment in technology, people and systems. This has led the APS Bank Group to a strong market position which also brings with it greater responsibilities. The bank has long identified the need for scale as a priority and this led to many months of studies and extensive, professional evaluation that now underpin the non-binding offer," APS said.
"In the bank’s view, its proposal presents the best future for all the stakeholders of HSBC Bank Malta plc, and of course those of APS Bank plc."
HSBC is the second largest bank in Malta with a 21% market share, following Bank of Valletta, which has a 44% share. APS is the third largest bank with an 11% share of the market.