TPL Corp and Abhi Limited, a Pakistani financial platform, have partnered to consider the potential acquisition of a majority shareholding in FINCA Microfinance Bank Limited.
The development was shared by TPL Corp, the investment holding company of the TPL Group, in its filing to the Pakistan Stock Exchange (PSX) on Tuesday.
“We are pleased to announce that the Board of Directors of TPL Corp Limited (“TPL”) has accorded its approval to TPL to jointly explore the potential acquisition of a majority shareholding in FINCA Microfinance Bank Limited along with Abhi (Private) Limited,” read the notice.
TPL Corp shared that it has entered into a non-binding term sheet along with Abhi.
“The Proposed Transaction shall remain subject to the approval of the State Bank of Pakistan (SBP) to commence the due diligence, the outcome of the due diligence process, obtaining requisite internal and regulatory approvals and entering into definitive documentation,” read the notice.
Earlier 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.
“We would like to inform you that the proposed merger negotiations between FINCA Microfinance Bank Limited and Apna Microfinance Bank Ltd have been stopped,” APNA said in a statement back then.
“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,” it added.
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