MCB to buy 55pc shares in Telenor Microfinance Bank

KARACHI: MCB Bank Limited is looking to acquire 55 percent shares in Telenor Microfinance Bank (TMB), a bourse filing said on Tuesday.

“Subject to the permission granted by the State Bank of Pakistan (SBP) or any other regulatory authority, the board of directors of the bank in its meeting held on October 27, 2021 has accorded its in-principle approval to conduct a due diligence for a potential transaction for the purchase of 55 percent shares of M/s Telenor Microfinance Bank Limited held by Telenor Pakistan BV (operates under the Easypaisa brand name),” the bank said in a notice sent to the Pakistan Stock Exchange.

The bank would start the due diligence process, and would take some time to come up with an offer.

Meanwhile, a statement posted by the Telenor Group on its website said the company was considering a potential sale of its 55 percent ownership stake in Telenor Microfinance Bank in Pakistan, and that a process to evaluate interested partners has been initiated.

“Telenor Group is continuously reviewing strategic and structural options to ensure long-term value creation for its shareholders. Telenor Microfinance Bank has been driving digital innovation in the financial sector for more than 10 years and has firmly established its position as a leading Fintech company in Pakistan. A process to evaluate partners committed to support TMB’s long-term growth strategy has been initiated,” said Lars Erik Tellmann, SVP and Head of Mobile Financial Services, Telenor Group.

“Telenor Microfinance Bank has been innovating to offer inclusive digital financial services to its customers and its growth speaks of its success. As a shareholder of Telenor Microfinance Bank, and together with Telenor Group, we will continue to support the bank during this process as it brings innovative solutions to the market,” said Derek Hao, Country Manager of Pakistan, Ant Group.

Telenor Microfinance Bank would continue its operation as normal with Telenor Pakistan as a committed partner.

There can be no assurance that a transaction will result from this process nor has any decision on the matter been made by the company. In the event Telenor is to enter into any transaction, the company will make the necessary disclosures, it said.

TMB is jointly owned by Telenor Group and Ant Group. The bank was established in 2005 and has successfully developed into a significant player in Pakistan’s financial landscape, providing both traditional banking solutions and digital financial services. In 2009, the bank launched Pakistan’s first mobile banking platform Easypaisa, transforming digital payments in the country.