The Competition Commission of Pakistan (CCP) has approved the acquisition of a 94.8% shareholding in FINCA Microfinance Bank Limited by TPL Corp Limited and ABHI (Private) Limited, according to a CCP press release.
Under the terms of the Sale and Purchase Agreement, TPL Corp Limited will acquire a 33.17% stake, while ABHI (Private) Limited will take a majority share of 61.61% in the bank.
Background of the Sellers
The existing shareholders of FINCA Microfinance Bank include:
- FINCA Microfinance Coöperatief U.A.
- International Finance Corporation (IFC)
- Triodos Fair Share Fund
- Acumen Pakistan
These entities focus on sustainable investments and development in emerging markets.
CCP’s Assessment
In its competition review, the CCP analyzed the implications of the transaction within Pakistan’s microfinance lending market. It concluded that the acquisition would not create a dominant market position for the acquirers, ensuring continued competitiveness in the sector.
Profiles of the Acquirers
TPL Corp Limited, a publicly listed investment company, operates across multiple sectors, including insurance, real estate, security, asset tracking, and technology startups.
ABHI (Private) Limited is a licensed private company providing investment finance services under Pakistan’s non-banking finance company regulations.
About FINCA Microfinance Bank
FINCA Microfinance Bank Limited is a licensed microfinance bank regulated by the State Bank of Pakistan (SBP). It plays a significant role in offering financial services to underserved and underbanked communities in the country.
This acquisition marks a significant milestone for Pakistan’s financial sector, potentially fostering innovation and growth in microfinance services.