Potential Sale of Majority Shareholding in Hsbc Bank Malta p.l.c.

Core Viewpoint - HSBC Continental Europe has signed a put option agreement with CrediaBank for the potential sale of its 70.03% shareholding in HSBC Bank Malta p.l.c. This transaction aligns with HSBC's strategy to enhance its market presence in Europe and focus on corporate and institutional banking [1][2]. Transaction Details - The potential transaction involves CrediaBank acquiring HSBC's shareholding for a total price of EUR 200 million, equating to EUR 0.793 per share [6]. - Upon completion, CrediaBank will become the majority shareholder and is required to launch a mandatory takeover offer for the remaining shares at a price of EUR 1.44 per share for minority shareholders [7][8]. Strategic Implications - The transaction is seen as a strategic opportunity for CrediaBank, which plans to retain the existing management team and maintain the bank's listing on the Malta Stock Exchange while supporting its historical dividend policies [3]. - HSBC aims to strengthen its focus on corporate and institutional banking in Europe, leveraging this transaction to better serve international clients [2]. Regulatory and Approval Process - The completion of the transaction is subject to corporate and regulatory approvals, including consultations with HBCE's works council in France and approvals from the European Central Bank, Malta Financial Services Authority, and the Bank of Greece [4][5]. Financial Impact - The transaction is expected to result in a pre-tax loss of approximately EUR 0.3 billion for HBCE and around US$0.4 billion for HSBC Group, with an immaterial impact on the CET1 ratios of both entities [12]. Employment and Operational Commitments - CrediaBank has committed to retaining the Bank's employees on materially the same terms for at least two years post-transaction [11].