APS Bank plc has officially, through the Malta Stock Exchange, announced its interest in acquiring the 70.03 per cent shareholding of HSBC Holdings in HSBC Bank Malta plc. The declaration follows HSBC Malta’s announcement of an upcoming Extraordinary General Meeting to discuss the proposed transaction.

In a company announcement issued today, APS Bank confirmed it has submitted a Non-Binding Offer to HSBC Holdings plc, the ultimate parent company of HSBC Malta, and is preparing for the next stages of the process. This marks a significant step forward in a potential deal that could reshape Malta’s banking landscape.

APS Bank revealed it is working closely with Alvarez & Marsal as its lead financial advisor and Ganado Advocates as legal counsel. Additional advisors will join the process as the transaction progresses, including a comprehensive due diligence exercise.

The Bank’s Board of Directors and Management have commenced discussions with key stakeholders, with a particular focus on its Qualifying Shareholders:

• AROM Holdings Ltd, which owns 55 per cent of APS Bank.
• The Diocese of Gozo, holding a 12.7 per cent stake.

These discussions aim to secure endorsement for the proposed acquisition and ensure alignment on the rationale and potential benefits.

Just last week, the Archbishop of Malta told the Times of Malta that APS Bank’s takeover of HSBC is “far from a done deal”.

Meanwhile, on Thursday (today), HSBC issued a statement to say that it had received “a number” of bidders for the Malta bank, without revealing who the interested parties are or how many there might be.

APS Bank’s announcement confirming interest comes at a time when the bank continues to experience steady growth, driven by significant investments in technology, people, and systems.

On Thursday, it also separately announced that it is financing the development and expansion of Roma Cruise Terminal’s facilities at the Port of Civitavecchia, in Rome, Italy.

Over recent years, APS Bank has bolstered its market position through improved efficiencies, services, and revenues. The Bank has identified scaling its operations as a strategic priority, prompting extensive studies and evaluations that culminated in the Non-Binding Offer for HSBC Malta.

This development follows months of speculation surrounding the potential sale of HSBC Bank Malta. Earlier this year, WhosWho.mt broke the story about HSBC Continental Europe’s consideration of selling its majority stake in the Maltese subsidiary. Today's confirmation by APS Bank cements its role as a leading contender in the race for this landmark acquisition.

APS Bank expressed confidence that its proposal offers the best path forward for the stakeholders of both APS Bank and HSBC Bank Malta. The Bank has committed to keeping the market informed through further announcements and briefings as the process unfolds.

If successful, the acquisition would mark a transformative moment in Malta’s banking sector, potentially creating a stronger, more competitive entity to serve the evolving needs of customers and stakeholders. It would also signal the loss of a major international banking player on the island, and with that the loss of international banking expertise. Another point of concern is the reduction of banking options in Malta, with consumers and businesses facing fewer choices and potentially less favourable terms.