HSBC Bank Malta plc – Information to maintain a fair market

As disclosed in the Bank’s Annual Report and Accounts of 2015, Visa Inc, announced its proposed acquisition of Visa Europe Limited, subject to regulatory approval. HSBC Bank Malta p.l.c. is a Principal member and shareholder of Visa Europe Limited.

On 21 June 2016, this acquisition was completed, and the Bank 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.

To view the official announcement click here.