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The bidding for the privatisation of Habib Bank Limited (HBL) being held on
December 29, 2003 has marked the threshold reached through the hard work by
all stakeholders. Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation
& Investment stated this while addressing the pre-bid conference held here
today for the privatisation of HBL, which responded to certain clarifications
sought by the prospective investors for better understanding of the
transaction and the bidding process.
Dr. Hafeez Shaikh informed that the pre-qualification committee, which
included representatives of various ministries including Finance and the State
Bank of Pakistan had pre-qualified three parties for the bidding.
These parties include Agha Khan Fund for Development, Central Insurance
Company Limited and State of Qatar Supreme Council for Economic Affairs and
Investment. All the key issues had been resolved and the bidding process had
been made known to the potential pre-qualified bidders, he added.
Later, the Minister handed over the pre-qualification letters to the
representatives of the three parties, which have completed their due diligence
in the data room.
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.