Hili Ventures has acquired a 4.99% stake in Bank of Valletta, purchasing just over 32 million shares from Unicredit in a transaction dated July 10, according to public records. The deal makes the privately held holding company the third-largest shareholder in Malta’s largest bank, behind the Maltese government and Unicredit, which retains a 5.2% stake.

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The company confirmed the transaction in comments to the Times of Malta on Wednesday. While there is no obligation to disclose the price at which the shares were sold, based on Tuesday’s closing price of €1.84 per share, the holding could be worth roughly €59 million.

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Hili Ventures described the acquisition as part of a broader strategy to grow its asset management division and diversify its investment portfolio. “This investment is aligned with Hili Ventures’ objective to expand its asset management division, which oversees a diversified investment portfolio across multiple sectors and reinforces the group’s asset base to complement its operating businesses,” a company spokesperson said.

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The development adds another layer to the firm’s expanding footprint in the Maltese economy. In recent years, Hili Ventures has increased its local real estate portfolio – acquiring the Tigné Point shopping mall – and expanded into luxury tourism, with a Six Senses redevelopment project on Comino currently awaiting approval.

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Bank of Valletta posted a record €302.4 million pre-tax profit in 2024, driven by rising operating income and a tighter cost-to-income ratio. A €100 million bond issue earlier this year was oversubscribed on day one, underlining investor confidence in the bank’s outlook.

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Unicredit, which inherited its BOV holding after a 2007 merger with Capitalia, has long played a passive role in the bank’s governance, nominating one board member but otherwise remaining hands-off. It is unclear whether the Italian banking giant plans to offload the rest of its 5.2% stake — or whether Hili Ventures would be among the potential buyers. Any further increase in ownership would require Hili Ventures to be a regulated entity licensed by the Malta Financial Services Authority, such as a bank, credit institution, payment provider, insurance company, or collective investment scheme.

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Bank of Valletta’s Memorandum of Association includes specific restrictions on shareholding thresholds. No person may acquire or hold, whether directly or indirectly, more than 5% of the issued share capital of the bank unless they qualify as an existing large shareholder or fall under specific exemptions. These exemptions include scenarios involving underwriting arrangements, scrip dividend allocations, rights issues, or share cancellations — and apply only under strict conditions. The M&A also stipulates that shares in excess of the 5% threshold may only be acquired by other licensed or regulated entities, and only with the necessary approvals from relevant authorities.

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