Hili Ventures revealed as mystery buyer of 4.99% Bank of Valletta stake

Hili Ventures has added a minority stake in Bank of Valletta to its investment portfolio, acquiring a 4.99% stake in the bank from Unicredit. 

The Malta-headquartered firm, which is led by entrepreneur Melo Hili, acquired the stake in a transaction dated July 10, public records show. It is its first known investment in the bank.

Hili Ventures' purchase of just over 32 million Bank of Valletta shares makes it the bank’s third-largest shareholder behind Unicredit – which still has 5.2% of the bank’s equity – and the Maltese government, which holds a 25% stake.

Should Hili wish to increase its Bank of Valletta stake beyond the 5% threshold, it will require regulatory approval to do so.  

The price it paid for Unicredit’s shares remains unknown, and given that Hili Ventures is privately owned it is not required to disclose it. Bank of Valletta shares closed trading at €1.84 on Tuesday. At Tuesday’s closing price, the stake would be worth around €59 million.

In a statement to Times of Malta, the company confirmed the purchase.

“This investment is aligned with Hili Ventures’ objective to expand its asset management division, which oversees a diversified investment portfolio across multiple sectors and reinforces the group’s asset base to complement its operating businesses,” a company spokesperson said.

The transaction only became public this week when Bank of Valletta issued a company announcement to report that Unicredit had sold a 4.99% stake to an unnamed buyer.

It said at the time that it was "delighted" by the transaction. Documents made public on Wednesday revealed the buyer to be Hili Ventures. 

Hili Ventures is the holding company of a diverse portfolio of companies spanning multiple sectors across Europe. Its revenues topped the €1 billion mark for the first time in 2024.

Best known for its fast-food and logistics empire across Europe, Hili Ventures is now expanding its presence in financial services through its asset management division.

It also further underscores the company’s growing interest in the Maltese economy. A Hili subsidiary acquired the Tigne Point shopping mall last year and another subsidiary is redeveloping a hotel in Comino, in partnership with luxury hotel brand Six Senses. That project, which obtained a planning permit earlier this year, is being appealed by objectors.

Unicredit, which is Italy’s second-largest bank, inherited its BOV shareholding when it merged with Capitalia back in 2007. It has played a largely passive role in BOV, nominating a member to the bank’s board but otherwise making little effort to shape the bank’s direction.

It remains unknown whether Unicredit intends to also offload its remaining 5.2% stake in Bank of Valletta. According to Bank of Valletta's Memorandum of Association, only the bank's "existing large shareholders" can own more than 5% of the bank's share capital at any given time.  

Bank of Valletta, which is Malta’s largest bank, recorded a €302.4 million pre-tax profit in 2024, with its operating income rising and cost-to-income ratio improving. A €100 million bond issue it released earlier this year was oversubscribed in its first day.