TPL Corp Limited, in cooperation with ABHI (Private) Limited, has completed the acquisition of a majority stake in Finca Microfinance Bank Limited, the company announced to deposit shares on Friday.
This deal represents the conclusion of a process that was revealed for the first time in November 2024. According to a statement issued by TPL Corp to the Pakistan Stock Exchange, the acquisition process is compatible with the regulatory requirements under the 2015 Securities Law and Item 5.6.1 (A). From the PSX rules book.
“Continuing our previous announcement on November 12, 2024, we are pleased to announce that the acquisition of the majority stake at Finca MicroFinance Bank Limited by TPL Corp Limited along with AbHi (Private) Limited has been successfully completed,” Read the notification sent to PSX.
This deal represents an important development in the microfinance sector in Pakistan, where the two entities captured stakes of current shareholders at the bank, including Finca MicroFinance Coöperratief UA, the International Finance Corporation (IFC), the Trio Fair Share Fund and Acumen Pakistan.
On January 13, 2025, the Pakistani Competition Committee (CCP) approved the acquisition of a 94.8% stake in Finca Microfinance Bank Limited by TPL Corp Limited and Abhi (Private) Limited.
According to the agreement, TPL Corp will account for 33.17% of Finca MicroFinance Bank, while AbHi (Private) Limited will get a majority share of 61.61%. After evaluating the competition, the Central Clearing Center concluded that the acquisition will not create a dominant situation in the market for those in the microfinance lending market in Pakistan.
Earlier, in November of last year, the Pakistani State Bank (SBP) agreed to move forward with a acquisition of up to 94.8 % of FINCA’s smaller finances.