HSBC Bank Malta announces details of potential takeover

The MSE Equity Price Index rose by 0.52% to 3,800.176 points as the gain in HSBC outweighed the declines in APS, MIA and MaltaPost. Meanwhile, ten other equities closed unchanged as today’s trading activity amounted to €0.54 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc surged by 6.8% to an almost one-month high of €1.42 across fifteen deals amounting to 49,854 shares. Yesterday, HSBC Bank Malta plc announced that it had signed an acknowledgement of a put option agreement between its parent company HSBC Continental Europe (‘HBCE’) and CrediaBank S.A., whereby CrediaBank will be paying €0.793 per share (amounting to a total consideration of €200 million) for HBCE’s 70.03% shareholding in HSBC Malta. The potential transaction is subject to an information and consultation process with HBCE’s employee works councils in France as well as approval by the relevant regulators. HSBC’s management and listing on the Malta Stock Exchange are anticipated to be maintained and the potential transaction is expected to be completed by the end of 2026. Following completion of the potential transaction, CrediaBank will become the majority shareholder of HSBC Malta and will launch a mandatory takeover offer for the remaining publicly-held shares. In this respect, minority shareholders will be entitled to sell their shares at a price of €1.44 per share which equates to a price to book multiple of 0.85x based on the net asset value of €1.708 per share as at June 2025. Until the completion of the transaction, HSBC Bank Malta plc intends to distribute dividends in 2026 on a quarterly basis, with a payout ratio of 60% of consolidated net profit, subject to Board and Regulatory approval. As part of the Potential Transaction, CrediaBank would also acquire the rights and liabilities of certain Tier 2 and MREL loans made between HBCE (or another member of the HSBC Group) and the Bank.

On the other hand, APS Bank plc shed 1.9% to the €0.52 level over three trades amounting to 10,514 shares.

Malta International Airport plc fell by 0.8% to the €5.95 level over four deals totalling 1,421 shares.

MaltaPost plc slumped by 4.5% to the €0.426 level on a single trade of 5,000 shares.

Meanwhile, Bank of Valletta plc closed unchanged at the €1.88 level over eleven trades totalling 136,059 shares.

Also in the banking sector, FIMBank plc traded flat at the USD0.115 level as 41,828 shares changed hands.

GO plc held the €2.68 level on a single deal of 13,000 shares.

Hili Properties plc traded flat at the €0.24 level over five deals amounting to 452,000 shares.

PG plc closed unchanged at the €1.83 level across four trades totalling 19,000 shares.

International Hotel Investments plc and Mapfre Middlesea plc both held the €0.45 and €1.43 levels respectively over trivial volumes.

The preference shares of RS2 plc held the €0.38 level on one deal of 12,375 shares.

Malita Investments plc closed unchanged at the €0.45 level on two trades amounting to 10,000 shares.

Main Street Complex plc held the €0.191 level on a single deal of 18,000 shares.

The RF MGS Index declined by 0.05% to 910.701 points failing to reflect the intra-day decline in euro area sovereign bond yields as data released today showed that inflation in the euro area during August remained flat at 2.0% rather than increasing to 2.1% as anticipated driven by a greater than projected decline in energy costs. Furthermore, on a month-over-month basis inflation increased by 0.1% which was also less than the 0.2% which was expected. Meanwhile, core inflation held steady at 2.3% in line with forecasts which is its lowest level since January 2022.

Elsewhere in the UK, data released today showed that inflation during August remained unchanged at 3.8% as projected. However, core inflation declined to 3.6%, down from 3.8% in the previous month and below the expected 3.7%.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.