According to official sources quoted on a blog website, the management of MCB Bank has decided not to pursue its interest in acquiring a sizable stake in either Telenor Microfinance Bank or its branchless banking operation, Easypaisa.
Rumor has it that the reason was a breakdown in negotiations between the management of the two banks over the sale price.
Another alleged problem is the settlement of the Telenor Microfinance Bank’s liabilities.
In November 2021, the Telenor Microfinance Bank’s 55 percent ownership holding will be sold, according to the Norwegian telecom giant.
The first party to express interest in purchasing the bank’s main shares was MCB Bank.
With the authorization of the banking regulation, the management had previously performed the Telenor Microfinance Bank’s exercise of due diligence to assess the deal’s potential.
Along with MCB Bank, United Bank Limited (UBL) and Askari Bank Limited also contacted the management of Telenor Microfinance Bank to express interest in buying shares one after the other.
Additionally, these banks were allowed to investigate the microfinance bank. On certain matters, however, conversations are taking place between the management.
Due to its potential for expansion in the microfinance industry, MCB Bank was viewed as a viable candidate for this purchase.
The bank previously bought and merged with NIB Bank in 2017, and it separated its operation of Islamic banking to create MCB Islamic Bank as a distinct company.
The bank has expressed interest in buying SMEs Bank as well, but that proposal was later abandoned.
To read our blog on “Three major Asian Banking & Finance Awards are given to U Microfinance Bank in 2022,” click here.
