ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 100 percent shareholding of M/s SadaPay Technologies Limited by M/s PPR Holding A S under a Share Purchase Agreement.
M/s PPR Holding A S, a private limited company based in Turkey, specializes in investments in financial institutions and technology companies.
The target of this acquisition, M/s SadaPay Technologies Limited, is a public unlisted company incorporated in Dubai, UAE, which serves as a holding company and parent of M/s SadaPay (Private) Limited, the ultimate target in this transaction.
The ultimate target, a private limited company in Pakistan, provides financial services, including a Mastercard debit card and a digital wallet.
According to the application, PPR Holding A S intends to acquire 100 percent shareholding of SadaPay Technologies, thereby gaining direct control over both SadaPay Technologies and SadaPay (Private) Limited upon finalization of the transaction.
The CCP’s market assessment identified the relevant product market as ‘Electronic Money Institutions (EMIs)’ in Pakistan. SadaPay (Pvt) Ltd’s market share in the digital transactions sector, serviced by various E/M-Wallet providers, is nominal and will remain unchanged following the transaction.
This acquisition will establish PPR Holding A S’s presence in Pakistan without leading to market dominance, as defined under Section 2(1)(e) and Section 3 of the Competition Act, 2010. Consequently, the CCP has authorized the transaction under Section 31(1)(d)(i) of the Act.
The entry of a renowned financial sector company into Pakistan will bring in new technologies, improve customer service standards, and provide more secure digital payment options. This acquisition also demonstrates Pakistan’s market potential for business expansion and investor attraction.
Copyright Business Recorder, 2024
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