HSBC Malta has announced that HBCE and CrediaBank have now entered into a “definitive agreement” for the sale and purchase of HBCE’s shareholding in the Bank (“the Proposed Transaction”).

The Bank, HBCE and CrediaBank said that they have also now entered into a cooperation agreement to govern their respective obligations in relation to the Proposed Transaction.

As per the Bank’s previous company announcements, the Proposed Transaction is subject to the attainment of the necessary corporate and regulatory approvals.

The Bank also announced that it has reached an agreement with the Malta Union of Bank Employees (‘MUBE’) to settle its pending industrial disputes. Post completion of the proposed transaction, the Bank would make a series of ex gratia payments to qualifying employees.

Subject to the Bank’s profitability and capital soundness not having materially deteriorated, the Bank’s financial contribution towards the total agreed settlement amount, is expected to be EUR10 million.

The Bank said that it will continue to provide information to the market in line with its obligations under the Capital Markets.

Photo: Geoffrey Fichte, CEO, HSBC Bank Malta and William Portelli, President, Malta Union of Bank Employees (MUBE)

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