The Competition Commission of Pakistan (CCP) has approved the acquisition of 94.8% stake in FINCA Microfinance Bank Limited by TPL Corp Limited and ABHI (Private) Limited. This transaction represents a significant development in the microfinance sector in Pakistan, as the two entities acquired stakes from the bank’s existing shareholders, including FINCA Microfinance Coöperatief UA, the International Finance Corporation (IFC), Triodos Fair Share Fund, and Acumen Pakistan.
Under the agreement, TPL Corp will acquire a 33.17% stake in FINCA Microfinance Bank, while ABHI (Private) Limited will acquire a majority stake of 61.61%. After assessing the competition, the Central Clearing House concluded that the acquisition would not create a dominant market position for acquirers in the microfinance lending market in Pakistan.
TPL Corp, a publicly traded investment firm, operates across a range of sectors, including insurance, real estate, asset tracking and technology startups. ABHI is a licensed private entity, specialized in providing investment financing services under Pakistan Non-Banking Finance Company (NBFC) regulations.
FINCA Microfinance Bank Limited, regulated by the State Bank of Pakistan, has been an important player in providing financial services to underserved communities. The outgoing shareholders – FINCA Microfinance Coöperatief UA, IFC, Triodos Fair Share Fund and Acumen Pakistan – are globally recognized entities focused on sustainable investment and socio-economic development in emerging markets.
This deal is expected to enhance the scope of microfinance services in Pakistan, and benefit from the diverse expertise of the acquiring entities.