New Age | Bank Asia begins takeover of Bank Alfalah’s Bangladesh operations

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| Photo by UNB

Bank Asia has begun the process of acquiring Pakistani Bank Alfalah’s branches in Bangladesh.

This is the third acquisition of a foreign bank by Bank Asia.

In 2001, Bank Asia acquired the Bangladeshi branches of Canadian company Nova Scotia and another Pakistani bank, Muslim Commercial Bank.

The audit and valuation of Bank Alfalah’s operations in Bangladesh are being carried out by PricewaterhouseCoopers (PwC) Bangladesh, a British multinational tax, audit and advisory firm. The initial cost of the acquisition is estimated at around Tk 600 crore, which Bank Asia will transfer to Pakistan in several tranches. Bank Asia officials expect the entire process to be completed this year.

Last month, Bank Asia and Bank Alfalah signed a memorandum of understanding for the acquisition.

Bank Asia Managing Director Sohail RK Hussain and Additional Managing Director ANM Mahfouz were present at the agreement signing ceremony.

Under the agreement, Bank Asia will pay the acquisition amount in several tranches, with part of the payment to be made one year after the completion of the initial phase.