TPL Corp Limited and Abhi Private Limited have successfully completed the acquisition of a majority shareholding in FINCA Microfinance Bank, a significant development that promises to reshape the landscape of microfinance in Pakistan. This acquisition follows the approval from SBP to allow TPL and Abhi to acquire up to 94.8% of FINCA’s shares, a decision that sets the stage for a new era in the microfinance sector.
The transaction received a major boost when the Competition Commission of Pakistan granted its approval, paving the way for the final acquisition. In a recent filing with PSX, the companies confirmed the successful completion of the deal. “In continuation of our earlier announcement dated November 12, 2024, we are pleased to announce that the acquisition of majority shareholding in FINCA Microfinance Bank Limited by TPL Corp Limited along with Abhi Private Limited has been successfully completed,” stated the official release.
This acquisition marks a pivotal moment in the microfinance sector, as it combines the resources of two influential companies, TPL Corp and Abhi, to take over a significant portion of FINCA Microfinance Bank’s operations. The deal involves the purchase of shares from existing stakeholders, including FINCA Microfinance Coöperatief UA and the International Finance Corporation (IFC), a prominent Washington-based non-profit organization.
Under the terms of the agreement, TPL Corp now holds 33.17% of the shares in FINCA, while Abhi Private Limited, which has secured the majority stake, owns 61.61%. This redistribution of ownership reflects the ambitions of both TPL and Abhi to take an active role in the development and growth of microfinance services in Pakistan, which has become an increasingly important sector for financial inclusion.
FINCA Microfinance Bank was established on June 26, 2008, and received its license from the SBP in August of the same year. Since then, the bank has been offering microfinance services to underserved populations, providing crucial access to financial resources for individuals and businesses that may otherwise be excluded from traditional banking services. The bank’s mission has been to help reduce poverty and empower people by providing affordable and accessible financial solutions.
The acquisition by TPL Corp and Abhi represents a forward-looking move that could accelerate the digitalization and modernization of microfinance in Pakistan. By leveraging TPL’s expertise in technology and Abhi’s innovative financial services platform, the new shareholders aim to enhance the services offered by FINCA, with an emphasis on increasing financial inclusion across the country.
Microfinance plays a crucial role in Pakistan’s economy, particularly in rural areas where access to formal banking services remains limited. With millions of people relying on microloans and financial services to start and grow their businesses, the need for robust and accessible microfinance institutions is greater than ever. The acquisition of FINCA Microfinance Bank is set to provide these services with enhanced capabilities, helping to meet the growing demand for financial inclusion in Pakistan.
The successful acquisition is not just a significant financial transaction; it also signals a shift in the direction of Pakistan’s microfinance sector. TPL Corp and Abhi bring with them a wealth of experience and a commitment to innovation, which could result in more efficient operations, improved customer experiences, and better access to financial products for low-income populations. Additionally, this move could lead to greater investments in technology-driven solutions, such as mobile banking and digital payments, which are crucial for reaching remote areas.
The collaboration between TPL Corp and Abhi is also likely to spark further interest in the microfinance space, both from local and international investors. The deal demonstrates the potential for growth in this sector, and it may encourage other companies to consider similar investments in microfinance institutions as they seek to contribute to financial inclusion and economic development in Pakistan.
