Mobilink Microfinance Bank has signed a share purchase agreement to buy an 82.5 per cent stake in Apna Microfinance Bank, VEON Ltd announced on Friday, in a deal that would bring together two of Pakistan's microfinance lenders.

The agreement is subject to regulatory approvals, including from the State Bank of Pakistan and the Competition Commission of Pakistan. VEON, the Nasdaq-listed digital operator that owns Mobilink Bank, said it would communicate the transaction's price and anticipated capital requirements once those approvals are obtained. Neither side has disclosed the price.

Focus Pakistan, reporting the deal, put the stake at 82.51 per cent and said the United Insurance group had agreed to sell its whole holding. Shareholders outside the proposed transaction currently hold the remaining 17.49 per cent of Apna Bank.

What Apna Bank brings to Mobilink

Apna Bank has built a branch network of more than 70 business locations across Pakistan, with a loan book focused on agriculture and small businesses, serving rural and underserved communities that have historically had limited access to formal banking. VEON said it would be business as usual for Apna Bank's customers while the transaction moves through the regulatory approval process.

Once the deal completes, Apna Bank's network will become part of Mobilink Bank's nationwide network, giving customers broader access to its Islamic banking offerings, digital capabilities and wider financial services. Mobilink Bank operates through digital channels and a network of 132 branches across Pakistan.

VEON said the acquisition extends Mobilink Bank's "Growth with Purpose" strategy, which pairs deposit-led growth with expanding access to formal financial services for underserved people, and builds on Mobilink Bank's position as one of Pakistan's largest microfinance banks by branch network.

A deal two years in the making

The agreement follows a long run-up. A letter from the State Bank of Pakistan dated 6 February gave Mobilink the go-ahead for due diligence on Apna, while making clear that it did not amount to final approval of any merger or acquisition. Mobilink then issued a public announcement of intention on 12 March, with Arif Habib Ltd as manager to the offer. Arif Habib has since extended the deadline for announcing a public offer to 7 December under Pakistan's takeover rules.

Apna, in a corporate briefing, later outlined a merger into Mobilink under Section 48 of the Banking Companies Ordinance, 1962, subject to due diligence and negotiations. Apna began in January 2005 as Network Microfinance Bank, before the United International Group bought it and renamed it. VEON, which owns Jazz, holds nearly all of Mobilink through VEON Microfinance Holdings B.V., and Mobilink has operated since 2012.

Apna Bank's losses and the price question

The deal comes with Apna Bank in a weak financial position. According to its unaudited interim statements, Apna lost Rs1.152 billion in the nine months to 30 September, compared with Rs1.225 billion in the same period last year. Its accumulated losses reached Rs16.99 billion, up from Rs15.84 billion in December, leaving negative equity of about Rs11.66 billion, meaning its recorded liabilities exceed its assets.

Its deposit base stood at about Rs30.9 billion in September, nearly three times its roughly Rs11 billion in advances. The directors said recoveries from bad loans had improved, with credit loss charges and net write-offs falling to Rs42 million from Rs58 million.

VEON said the combined business would sit alongside JazzCash, JazzSure Insurance and FikrFree in its financial services portfolio in Pakistan. VEON Digital Financial Group serves 59 million active financial services customers across Pakistan, Kazakhstan and Uzbekistan as of the third quarter of 2026.

"Pakistan remains a high-growth market for VEON," said Kaan Terzioglu, VEON's group chief executive. "This agreement brings together Mobilink Bank's digital capabilities and Apna Bank's experience serving agriculture and micro-enterprises, creating an opportunity to reach more underserved communities."

Haaris M. Chaudhary, president and chief executive of Mobilink Bank, said the agreement reflected the bank's confidence in Pakistan's financial sector and its commitment to prudent, well-governed growth, with continuity for Apna customers coming first during the transition.

Sources: VEON Ltd via GlobeNewswire and Focus Pakistan.