‘We have submitted our offer’: Ardshinbank confirms HSBC Malta bid

Armenian bank says it is ‘quite confident’ of its chances

Armenian bank Ardshinbank has confirmed that it has submitted a bid for HSBC Malta, describing itself as “quite confident” about its chances of acquiring the bank.

The bank confirmed its bid in an exclusive interview with Times of Malta, set to be published over the coming days.

“We are currently one of the bidders for the 70% stake in HSBC Malta,” the bank’s deputy chair David Sargsyan said. “We have submitted our offer to them.”

The ball is now in HSBC Continental Europe’s court, as HSBC Malta’s majority shareholder, to “do its homework and make the final decision,” he added.

Sargsyan says he is “quite confident” of the bank’s chances of being selected as the preferred bidder, pointing to its recent takeover of HSBC in Armenia.

Ardshinbank completed its purchase of HSBC Armenia in November 2024.

Sargsyan said the bank had been eyeing Malta for some time, seizing the opportunity once HSBC Malta announced its plans to exit the country last September.

The Armenian bank’s interest in taking over from HSBC was first revealed exclusively by Times of Malta earlier this month. At the time, the bank had declined to comment, citing its policy not to comment on market speculation.

However, the bank has now changed tack, publicly confirming that it is actively trying to purchase HSBC Continental Europe’s 70% shareholding in HSBC Malta.

Move would mark bank’s first step into EU

The move would mark the bank’s first venture outside Armenia and, more significantly, its first step into the EU.

In the upcoming interview, Sargsyan discussed why Ardshibank hopes to become Malta’s next major bank and what customers can expect if this happens, including its plans for HSBC Malta’s current staff and branches.

He is also grilled on Ardshinbank’s owner’s deep-rooted business links in Russia.

Karen Safaryan, the billionaire who owns 98% of the bank’s shares, first built his business empire in Russia throughout the 1990s and early 2000s, although he insists that he has since divested all business assets in the country.

Times of Malta previously reported that Safaryan’s history of business in Russia has raised red flags in industry circles, with sources saying the local and European regulators are highly likely to raise reputational concerns over the prospect of Ardshinbank entering the European market.

One of the initial frontrunners in the race, Hungarian bank OTP, declined to submit a bid after meeting similar reputational concerns.

Another potential bidder, local bank APS, also dropped out, sensing little institutional support.

Meanwhile, a third bidder, German fintech firm RS2 pulled out of the race after HSBC upped its initial asking price.

Other bidders include a local business consortium and another, as yet unnamed, Eastern European bank.