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The Privatisation Commission is holding a pre-bid conference for the
privatisation of Habib Bank Limited (HBL) among the prospective bidders on
Monday December 22, 2003. Dr. Abdul Hafeez Shaikh, Federal Minister for
Privatisation & Investment, will chair the pre-bid conference. The conference
will respond to certain clarifications to be sought by the prospective
investors for better understanding of the transaction and the bidding process.
Pakistan's Privatisation Commission ("PC") had received unprecedented interest
from around the world by receiving 19 Expression of Interest (EOI) for the
privatisation of Habib Bank Limited ("HBL"), by the intended sale of a minimum
stake of 26% up to 51 % of its shareholding from reputed International and
Pakistani parties (participating solely, or as part of a consortium) for
entering the process towards acquiring the indicated shareholding in HBL for a
better competition. The terms of a sale include the transfer of management
control of HBL.
The remarkable and encouraging response resulted due to the personal interest
and hectic efforts by Dr. Abdul Hafeez Shaikh, Federal Minister for
Privatisation & Investment and his team, which had attracted an unprecedented
number of EOIs for such a potentially large transaction. The investors who had
expressed interest for HBL include parties from Canada, Europe, UK, USA, Saudi
Arabia, UAE, Qatar and Yemen along with domestic
interest.
In the light of the fact that the Privatisation Commission is processing HBL
transaction in-house without hiring the services of a Financial Advisor, the
level of interest generated is highly commendable and is a testament to the
efforts being undertaken to market Pakistan as an investment haven.
HBL is Pakistan's second largest commercial bank, having a countrywide and
international branch network. HBL has full service licence covering
commercial, retail banking, consumer and investment banking activities in
Pakistan and most of the other countries where it is present.HBL has an
extensive domestic network consisting of 1,425 branches with a market share of
approx. 20%. HBL operates a large international network of 48 branches in 26
countries spread over Europe, the Middle East, Far East, Asia, Africa and
the United States. It operates three wholly owned subsidiaries namely Habib
Bank Financial Services (PVT) LTD. Karachi, Habib Finance International LTD
(Hong Kong) and Habib Finance Australia Ltd. - Sydney; 2 Joint Ventures namely
Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%). In addition, the
Bank owns 90.5% shares in Habib Allied International Bank Plc, a bank
incorporated in the UK. HBL also has 2 representative offices in Iran and
Egypt.
PC together with its appointed Advisors A.F. Ferguson & Co. and Legal Advisors
Haidermota & Co. is in the process of the competitive bid, negotiation and
sale process in accordance with the privatisation laws of Pakistan.
An extensive streamlining and restructuring programme has been implemented by
HBL's management towards the preparation for the privatisation of the bank.
HBL's privatisation represents an attractive investment opportunity for
investors interested in leveraging HBL's extensive presence and market share.