The State Bank of Pakistan (SBP) has given a green signal to TPL Corp Limited (TPL), a Pakistani financial platform, and Abhi (Private) Limited (Abhi) to commence the due diligence of FINCA Microfinance Bank Limited.
The development was shared by TPL Corp, the investment holding company of the TPL Group, in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“We are pleased to announce that the SBP, by way of its letter dated December 18, 2023, has granted TPL Corp and Abhi (Private) Limited its approval to commence the due diligence of FINCA Microfinance Bank Limited for the purpose of a potential acquisition by TPL along with Abhi of a majority shareholding in the bank,” read the notice.
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“The proposed transaction will remain subject to the outcome of the due diligence, obtaining requisite internal and regulatory approvals and entering into definitive documentation,” it added.
Earlier in November, TPL Corp and Abhi Limited partnered, through a non-binding term sheet, to consider the potential acquisition of a majority shareholding in FINCA Microfinance Bank Limited.
Back in January, Apna Microfinance Bank Limited (APNA), a microfinance services provider, entered into a Memorandum of Understanding (MoU) with FINCA.
However, in July, FINCA and APNA announced that they were suspending merger talks after completing a comprehensive due diligence process.
“This decision comes after both parties completed the reciprocal due diligence process. Further, the APNA is exploring other opportunities to secure the interest of its stakeholders, depositors, borrowers, regulator, partners, and staff,” APNA said in a statement back then.
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