TPL, Abhi eye FINCA stake

KARACHI: The State Bank of Pakistan (SBP) has approved TPL Corp and Abhi (Private) Limited to start due diligence of FINCA Microfinance Bank, the company said on Tuesday, as they seek to acquire a majority stake in the lender.

TPL Corp, an investment holding company, and Abhi, a financial platform, said in a notice to the Pakistan Stock Exchange that they had received the green light from the central bank on December 18.

“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,” TPL said in the notice.

The proposed transaction is subject to the outcome of the due diligence, obtaining internal and regulatory approvals and entering into definitive agreements, they said.

TPL Corp and Abhi had signed a non-binding term sheet in November to consider buying a majority shareholding in FINCA Microfinance Bank, which offers loans, savings and insurance products to low-income customers.

The deal would mark the second attempt by FINCA Microfinance Bank, a subsidiary of U.S.-based FINCA Impact Finance, to merge with another Pakistani microfinance institution this year.

In January, FINCA Microfinance Bank had entered into a memorandum of understanding with Apna Microfinance Bank, but the talks were suspended in July after both parties completed the due diligence process.

Apna Microfinance Bank said at the time that it was exploring other opportunities to secure the interest of its stakeholders.