HSBC Bank Malta plc - Receipt of Proceeds from Visa Europe Transaction

Thursday, June 23rd, 2016

On 23 June 2016, HSBC Bank Malta plc issued an announcement stating that Visa Inc. completed the acquisition of the entire share capital of Visa Europe Limited. As disclosed in the Bank’s Annual Report and Accounts of 2015, HSBC had already indicated that Visa Inc. was in the process of acquiring the entire share capital of Visa Europe Limited, in which HSBC is a Principal member and shareholder.

In this respect, HSBC received a cash consideration and preferred stock convertible into ordinary shares. The Bank has also been informed that a further cash payment will be made in 2019.

As a result, after taking into consideration potential costs, the Bank recognised an amount of €7,626,441 as income, which will be included under ‘Net other operating income’ in the Income Statement for the period ending 30 June 2016. This represents a one-off gain for 2016. The pre-tax value of the convertible preference shares together with the deferred cash payment, expected in 2019, has been estimated at €1,379,432. These amounts are not significantly different from the amounts recognised as a financial asset and retained within reserves in the 2015 Annual Report and Accounts.

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