HSBC Bank Malta has categorically stated that there is currently no preferred offeror for its local operations, as the bank stated it remains in the early stages of a potential sale process. This statement comes amid increasing reports within financial and business circles, that a group of investors, which could possibly also include prominent Maltese business figures, have also expressed interest in acquiring the bank.

In a statement on Tuesday, HSBC Malta referred to the extraordinary general meeting held in February, where shareholders authorised the bank to provide confidential information to potential offerors for a substantial shareholding. The bank revealed that it has signed a confidentiality agreement with its largest shareholder, HSBC Continental Europe, and is in the process of signing similar agreements with other interested parties.

"HSBC Holdings plc has confirmed that there is no preferred offeror and that the process remains at an early stage," the bank said. It also noted that any potential transaction would require regulatory approval from the Malta Financial Services Authority (MFSA) and the European Central Bank (ECB), a process expected to take several months.

Industry sources told WhosWho.mt that while the process between HSBC and APS Bank remains active, the overall outlook seems to have become somewhat more competitive, particularly following the September revelations that APS is in discussions to acquire HSBC Malta. At that point, there were no indications that other parties were or could be interested in acquiring the local bank.

Both HSBC and APS have since reportedly also engaged merger and acquisition advisors to assist them through the current process, signalling the seriousness of their intentions. However, insiders suggested that HSBC is reportedly also keen to engage with other potential bidders “or let’s say it is certainly keeping the door wide open.”

The emergence of potential new interested investors, if confirmed, and which could possibly include a few leading figures in the Maltese business community, adds another layer of complexity to the potential sale.

Industry sources indicate that lobbying efforts are underway as HSBC’s global leadership navigates the divestment process. Sources said that amongst the firms potentially involved in this group of investors, there are parties with experience in negotiations at this level.

It is not clear whether the group of investors includes an interest from another local or foreign bank.

While the ongoing talks with APS Bank are not believed to be derailed, it remains unclear whether HSBC’s openness to other bidders is a strategic move to secure better terms with APS or if the process could ultimately lead to a different buyer.

WhosWho.mt first and exclusively reported in September that APS Bank was in advanced negotiations to acquire HSBC Malta.