APS Bank has confirmed its interest in pursuing the acquisition of the 70.03% holding of HSBC Continental Europe in HSBC Bank Malta, and that it has accordingly submitted a Non-Binding Offer to the ultimate parent, HSBC Holdings.

The Bank said that it will be convening and extraordinary general meeting for shareholder approval of the takeover. No figure was disclosed by APS for the share purchase.

The Bank went on to say that it is being assisted in the process by Alvarez & Marsal as lead financial advisor, and Ganado Advocates as legal counsel. Other advisors are lined up to join once work on a potential transaction, including any due diligence exercise, unfolds in due course.

During this period, the Bank’s Board of Directors and Management will be engaging with their various stakeholders to help inform them further about the rationale and merits of such an acquisition.

Foremost will be the shareholders, and primarily the Qualifying Shareholders AROM Holdings Ltd (55.0%) and the Diocese of Gozo (12.7%), and their own advisors, whose endorsement is being enlisted, the Bank said.

“The Bank has been growing steadily, improving efficiencies, services and revenues thanks to the significant transformational investment in technology, people and systems. This has led the APS Bank Group to a strong market position which also brings with it greater responsibilities,” APS said.

It went on to say that, “The Bank has long identified the need for scale as a priority and this led to many months of studies and extensive, professional evaluation that now underpin the Non-Binding Offer. In the Bank’s view, its proposal presents the best future for all the stakeholders of HSBC Bank Malta plc, and of course those of APS Bank.”

The Bank reiterated that it will “keep the market informed through further company announcements whenever necessary as well as with customary Market Briefings, where appropriate.”

Photo: APS Bank

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