HSBC says there is 'no preferred offeror' in takeover talks

HSBC Bank Malta said on Tuesday that there is no preferred offeror to take over its local operation, and the process is still at an early stage.

The bank in a statement referred to a decision taken at an extraordinary general meeting in February where shareholders authorised it to furnish confidential information to offerors "to make, confirm, withdraw or modify any offer(s) for a substantial shareholding."

It said it had signed a confidentiality agreement with its biggest shareholder, HSBC Continental Europe. It is also in the process of signing confidentiality agreements with a number of prospective offerors and will be handing them confidential information.

"The Bank has been informed by HSBC Holdings plc that there is no preferred offeror and that the process remains at an early stage," it said.

It also pointed out that any potential transaction would require regulatory approval from both the MFSA and the European Central Bank, a process that would be expected to take several months.

"HSBC Holdings plc has confirmed that it remains committed to supporting the Bank, its customers and its employees throughout this process," it said.

Times of Malta exclusively revealed last September that APS Bank was in advanced negotiations to buy HSBC Malta and that negotiations with HSBC’s global shareholders have been underway for several years. The Maltese church is the biggest shareholder in APS.

In November, Archbishop Charles Scicluna said the possibility of APS Bank acquiring HSBC Malta was “far from being a done deal”.