TPL Corp and Abhi Limited Collaborate on Potential Acquisition of FINCA Microfinance Bank
In a strategic move TPL Corp, the investment holding company of the TPL Group, has joined forces with Abhi Limited, a prominent financial platform, to explore the possibility of acquiring a majority shareholding in FINCA Microfinance Bank Limited. This announcement comes as a part of TPL Corp's recent filing to the Pakistan Stock Exchange (PSX) on Tuesday.
Karobar
According to the notice released by TPL Corp, the Board of Directors has granted approval for the joint exploration of this significant venture with Abhi (Private) Limited. The companies have entered into a non-binding term sheet, laying the foundation for further collaboration.
The proposed transaction, as outlined in the notice, is contingent upon obtaining approval from the State Bank of Pakistan (SBP) to initiate due diligence. The process will also include obtaining necessary internal and regulatory approvals and finalizing definitive documentation.
It is noteworthy that this move follows earlier developments in the microfinance sector, specifically in January when Apna Microfinance Bank Limited (APNA) engaged in a Memorandum of Understanding (MoU) with FINCA. However, in a surprising turn of events in July, FINCA and APNA halted their merger talks after completing an extensive due diligence process.
A statement from APNA at that time clarified, "We would like to inform you that the proposed merger negotiations between FINCA Microfinance Bank Limited and Apna Microfinance Bank Ltd have been stopped." The decision came after both parties concluded the reciprocal due diligence process, and APNA expressed its commitment to exploring alternative opportunities in the interest of stakeholders, depositors, borrowers, regulators, partners, and staff.
This collaboration between TPL Corp and Abhi Limited in the potential acquisition of FINCA Microfinance Bank adds an intriguing chapter to the evolving landscape of financial ventures in Pakistan.
