The Bank of Georgia has joined the race to acquire HSBC’s Malta operations, according to the Times of Malta, further complicating the negotiations surrounding the bank’s planned exit from the country.

‎

The Tbilisi-based lender, part of the UK-incorporated Lion Finance Group, is the latest bidder after Armenia’s Ardshinbank formally announced its offer last week. However, sources close to the process say both bids face hurdles that could derail a deal.

‎

Bank of Georgia’s bid, first reported by bne IntelliNews, is reported to be lower in value than other offers received, which may weaken its chances. The bank’s links to Belarus could also attract additional scrutiny from Maltese and European regulators.

‎

Ardshinbank’s proposal has come under pressure over the owner’s past links to Russia and conflict-of-interest concerns surrounding the involvement of a former HSBC senior executive as an advisor on the bid. The bank has denied the allegations, insisting its owner has severed ties with Russia and dismissing claims of conflicts as “total speculation.”

‎

Several other potential contenders have dropped out of the process. A local consortium’s offer was never considered a serious possibility, while another bank exploring a joint bid with German fintech firm RS2 withdrew early on. Local bank APS and Hungarian lender OTP also stepped back after expressing initial interest.

‎

HSBC announced its plans to exit Malta in September 2024. Almost a year later, the sale process remains unresolved.

‎

HSBC Malta CEO Geoffrey Fichte admitted on Wednesday that the extended timeline had become “a challenge.” He said, “Everyone agrees that it is in the best interest of shareholders and the company to conclude this as soon as possible.”

‎

Sources had previously indicated that the bank hoped to identify a preferred bidder by early summer, but delays have persisted as complications emerged.

‎