MICROCAPITAL STORY: Another GrameenPhone? Telenor Pakistan, a Subsidiary of Telenor, the Majority Owner of GrameenPhone, Acquires 51% Stake in Tameer Microfinance Bank Limited for $12.5m

Telenor Pakistan, a subsidiary of Telenor, a Norwegian communications, IT, and media company, has acquired 51 percent of Tameer Microfinance Bank Limited (TMBL) for PKR 1 billion, approximately USD 12.5 million, sources say. Established in 2001, Tameer Microfinance Bank is a USD 20.3 million commercial microfinance bank in Pakistan. The transaction is subject to full regulatory approval including a no-objection certificate (NOC) issued by the State Bank of Pakistan. This partnership with Telenor will extend the bank’s operation and network across the country, specifically in rural areas, to promote the microfinance business in the country.

Tameer Microfinance Bank is using mobile banking as a primary way to reach its rural customers. The company has 27 branches, but many of its 85,458 borrowers are in rural areas and must travel long distances to perform even the most routine banking transactions. Last year, MicroCapital reported that TMBL was named as one of Consultative Group for the Poor’s (CGAP) nine technology partners. As part of the partnership, CGAP staff provided technical advice and operational guidance to help Tameer Bank implement the use of cards and point-of-sale devices to complete financial transactions. The acquisition of Tameer by Telenor Pakistan would allow Tameer to greatly increase the scope of its business while employing cost saving technologies.

Telenor, Telenor Pakistan’s parent company, owns a 62 percent stake of GrameenPhone. The remaining 38 percent of GrameenPhone is owned by Grameen Telecom Corporation, a subsidiary of Grameen Bank. GrameenPhone is Bangladesh’s largest provider of cell phone services and as MicroCapital reported last year, the company is planning an initial public offering (IPO). Recently, GrameenPhone filed a new application for its IPO which reduced the size of the offering by half to USD 75 million. A separate private placement of shares has also been reduced to USD 50 million, from an earlier estimate of USD 150 million.

By Iyanna Holmes, Research Assistant

Additional Resources:

MICROCAPITAL STORY: February 12, 2007, CGAP Announces Its 9 Technology Picks; June 26, 2007, GrameenPhone of Bangladesh Announces IPO Set For 2008

MIX Market: Tameer Microfinance Bank

Pakwatan: Telenor to Acquire Tameer Microfinance Bank

Pro Pakistani: Telenor Pakistan Acquires 51% of Tameer Microfinance Bank

Telecom Paper: Grameenphone Reduces Size of IPO