Bank Asia embarks on acquisition of Bank Alfalah’s BD unit

Staff Reporter :

Bank Asia has commenced the process of acquiring the Bangladesh operations of Pakistan-based Bank Alfalah, marking its third foreign bank acquisition to date.
In 2001, Bank Asia acquired the Bangladesh operations of Canada-based Nova Scotia and Pakistan-based Muslim Commercial Bank.
PricewaterhouseCoopers (PwC) Bangladesh, a UK-based multinational tax, audit, and consulting firm, is conducting the audit and valuation of Bank Alfalah’s Bangladesh operations.
According to available data, the initial acquisition cost is estimated at around Tk 600 crore, which Bank Asia will transfer to Pakistan in several tranches. Bank Asia officials anticipate completing the entire process within this year.
Bank Asia and Bank Alfalah signed a memorandum of understanding regarding the acquisition in June last year. Sohail RK Hussain, Managing Director of Bank Asia, and ANM Mahfuz, Additional Managing Director, were present at the signing ceremony.
As per the MoU, Bank Asia will pay the acquisition amount in multiple tranches, with part of the payment scheduled one year after the initial phase.
Earlier, the State Bank of Pakistan granted in-principle approval to Bank Alfalah Limited to facilitate Bank Asia Limited in conducting due diligence of operations in Bangladesh, as Bank Alfalah aims to sell 100 percent of its assets and liabilities related to its Bangladesh operations by May.
Bank Alfalah, one of Pakistan’s largest commercial banks, shared this development in a statement to the Pakistan Stock Exchange (PSX) on May 17 this year. The statement noted, “We are pleased to inform you that the State Bank of Pakistan has granted in-principle approval to Bank Alfalah Limited (BAFL) to facilitate Bank Asia Limited (Bank Asia) in conducting the due diligence of BAFL’s operations in Bangladesh, in view of the prospective sale of 100pc of the assets and liabilities attributable to BAFL’s Bangladesh operations to Bank Asia.”