Updated 11am with bank comment
A "number" of bidders have shown interest in acquiring HSBC Holdings' indirect 70% shareholding in its Malta bank, according to a company announcement published on Thursday morning.
It has not revealed the identity of the interested parties and how many there might be.
Last September, Times of Malta reported that negotiations between APS and HSBC’s global shareholders had been underway for more than two years, ever since it became apparent that HSBC Malta was looking to wind down its operations.
HSBC Malta reacted by saying it did not know of any such talks, but in a public announcement confirmed it was carrying out a strategic review and was considering “a range of options”.
On Friday, Archbishop Charles Scicluna said contrary to what many have suggested, the possibility of APS Bank acquiring HSBC Malta is “far from being a done deal".
In a company announcement on Thursday morning, HSBC Bank Malta said it would be convening an extraordinary general meeting to obtain shareholder approval to allow interested parties to conduct due diligence checks and take negotiations to the next level.
Times of Malta understands that all of the bids received are non-binding.
HSBC implied as much in its announcement, stressing that "no decisions have been made" and that its parent company, HSBC Continental Europe, "continues to consider a full range of options".
The extraordinary general meeting can only take place in January at the very earliest, as HSBC's articles of association require a minimum of 46 days to pass from the moment items are added to the agenda of a shareholder meeting to it being held.
But sources told Times of Malta that the EGM is likely to be held significantly later, in late February or early March.
Following the announcement, an HSBC Bank Malta spokesperson said the bank will continue to comply with its banking confidentiality and data privacy obligations at all times.
"These are continuing obligations for the bank and will remain applicable even during any due diligence process that is undertaken."
Rumours of HSBC exiting the Maltese market have swirled for years, fuelled by the global bank's gradual pivot away from Europe and smaller markets towards Asia.
In 2020, the Financial Times reported that the bank was considering whether to wind down its operations in several smaller markets, including Malta.
And in May last year, a Reuters report said that the bank was considering an exit from a dozen unnamed countries in Europe as it focused on growing its business in Asia.
HSBC has been a presence in Malta since June 1999 when it acquired a 70.03% stake in Mid-Med Bank.
It 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.