The shareholders of Bank Alfalah (BAFL), one of Pakistan’s largest commercial banks, have approved the sale of its Bangladesh operations to Bank Asia, a private-sector commercial bank based in Dhaka, for around $47.5 million.
The listed bank announced the development during its 78th Annual General Meeting (AGM), the minutes of which were shared with the Pakistan Stock Exchange (PSX) on Friday.
The shareholders resolved that Bank Alfalah Limited is authorised to sell the Bangladesh operations of the BAFL to Bank Asia Limited, Bangladesh, for a consideration of BDT 5,800,000,000/-, equivalent to $47.50 million approx., being the base consideration.
The sale price is subject to agreed closing adjustments by way of merger of BAFL - Bangladesh Operations with and into Bank Asia Limited as per the applicable laws and regulations, subject to approvals of the State Bank of Pakistan, the Bangladesh Bank and approval from other regulatory authorities, either in Pakistan or Bangladesh.
About the banks
Incorporated in 1999, Bank Asia expanded operations with the purchase of Bank of Nova Scotia branches and Muslim Commercial Bank Limited’s (MCB) Bangladesh operations. In 2001, it purchased the operations of Scotiabank, which entered Bangladesh in 1999.
BAFL is one of the largest banks in Pakistan, with a network of over 1,024 branches across more than 200 cities in the country, and an international presence in Afghanistan, Bangladesh, Bahrain, and the UAE.
Earlier this year, Bank Alfalah took a step forward in the proposed divestment of its Afghanistan operations, as the State Bank of Pakistan (SBP) and the Central Bank of Afghanistan granted regulatory approvals enabling Ghazanfar Bank to commence due diligence.
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