PC Board Recommends Highest Offers For ICP Mutual Fund-Lot-A & 28 % Shares of Bank Alfalah For CCOP Approval 

Islamabad, September 21, 2002

Privatisation Commission Board has recommended for approval of the Cabinet Committee on Privatisation (CCOP) the highest offers received for 28 % equity stake in Bank Alfalah and Investment Corporation of Pakistan (ICP) Mutual Fund-LOT-A in a meeting, which met under the Chairmanship of Federal Minister for Privatisation Mr. Altaf M. Saleem here today. The bidding of three transactions conducted earlier to the Board meeting received the highest bid of Rs. 27.56 per share against the floor price of Rs. 26.56 per share for the entire remaining 30 % shares (22.5 million) making a total of Rs. 620.1 million offer by Abu Dhabi Group UAE, who acquired Bank Alfalah (former Habib Credit & Exchange Bank) in 1997 through an open bidding. The other party Javed Omer Vohra & Co attended the bidding but gave no offer. PC had received four EOIs from interested parties for the divestment of a minimum of 28% Equity Stake in Bank
Alfalah Limited through a Block Sale to the general public through an open bidding process. The buyer will also pay for 2 % shares allocated for the employees. In case, employees do not buy these shares, PC would reimburse the amount received on that account to the highest bidder.

Sealed bids for Investment Corporation of Pakistan Mutual Fund-lot-A were received, which were opened by the representatives of print and electronic media. The bid received were: ( I ) . ABAMCO Limited, Rs. 175 million (II). Consortium of Arif Habib Securities Limited and Arif Habib Investment Management Limited, Rs. 125.1 million (III). Charless Schmitt & Associates
Limited (CSA), Hong Kong, Rs. 63 million (IV) Consortium of Pakistan Kuwait Investment Company (Pvt.) Ltd. and Al Meezan Investment Management, Rs. 102.01 million (V) Pakistan Industrial Credit & Investment Corporation Ltd. (PICIC) Rs. 162.5 million. Sulaiman Ahmad Al Hoqani from UAE, though deposited the earnest money didn't turn up for the bidding. The three highest bidders i.e. ABAMCO Limited, Arif Habib Investment Management and PICIC were asked to raise their bids in the second phase of open bidding round but all the three declared that they have given their final offer. Therefore, ABAMCO Limited was declared the highest bidder.

For the sale and transfer of the Management Rights of lot 'A' of ICP Mutual Funds of Investment Corporation of Pakistan (ICP), Privatisation Commission had recommended nine parties for pre-qualification for the sale and transfer of the Management Rights of lot 'A' of ICP Mutual Funds. Privatisation Commission had received sixteen Expressions of Interest from local and foreign Fund Managers. The successful bidder will manage the Fund under the rules prescribed by the
Securities Exchange Commission of Pakistan. Bidding was also held for the acquisition of 75 % Govt. owned share of Lyallpur Chemical & Fertilizers Limited (LC&FL) and 25 % shares of a private company which authorised PC to sell them. The bidding opened with Rs. 120/- per share floor price for 100 % shares with a minimum increase of Rupee one per share but could not proceed further as the participating two bidders did not make any bid. Chanar Sugar Mills Ltd Lahore and Sitara Chemical Group of Industries, Faisalabad insisted to substantially reduce the floor price. This was not acceptable to PC. As such the bidding process was cancelled.  PC Board reviewed the implementation status of various transactions, which included Pakistan State Oil, OGDCL, HBL, POL, NITL and offering of additional shares of NBP. A road show for National Bank of Pakistan's shares offer for sale has been planned at Karachi Stock Exchange on September 24, 2002. PC Board members and senior officials of the respective Ministries attended the meeting.