In an announcement at Pakistan Stock Exchange last week, MCB Bank has stated that its Board of Directors approved due diligence of a potential acquisition of 55% of Telenor Microfinance Bank Limited, held by Telenor Pakistan BV.
“At its meeting on October 27, 2021, the Bank of Pakistan Board of Directors in principle approved the due diligence of the acquisition of 55% of the potential transaction in an invitation sent to the exchange.
Telenor Microfinance Bank is jointly owned by Telenor Pakistan and Ant Group, a subsidiary of China’s Alibaba Group.
Telenor Group (~55%) and the Chinese Fintech equity partner – Ant Financial, through its investment arm, AliPay (Hong Kong) Holding Limited (~45%) are the sponsors of the bank
The Bank had total assets of PKR 50.7bn, while it posted a net loss of PKR 7.59 billion in Nine Months period of 2021. The bank has been running in losses since 2019 after a Loan Scam was detected in the bank which pointed to weak controls in the Loan disbursement mechanism of the bank. Resultantly, bank has been booking massive provisioning since 2019. Bank has accumulated losses of Rs. 34.8 billion, largest in any bank in Pakistan.
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