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The Agha Khan Fund for Economic Development (AKFED) gave the highest bid of Rs.
22. 409 billion for acquiring 51 % Strategic stake in Habib Bank Limited (HBL),
the country's first ever biggest transaction in the history of Pakistan's
privatisation under the supervision of Dr. Abdul Hafeez Shaikh, Federal
Minister for Privatisation & Investment who is also Chairman of the
Privatisation Commission here today, which was also witnessed by a large
number of the representatives of the print and electronic media.
The State of Qatar Supreme Council for Economic Affairs Investment remained
runner up with an offer of Rs. 21. 99375 billion while Central Insurance
Company Limited did not turn up for the bidding.
Addressing on this occasion Dr. Abdul Hafeez Shaikh while terming the highest
offer as within the acceptable range said that it would highlight and
strengthen the Pakistan's privatisation Program and would help in attracting
investors for the other upcoming entities in a big way. The country's
Privatisation Program was aimed to get better results for the economy of
Pakistan and there was need to build confidence among the people regarding the
privatisation process, which was designed to be transparent and to bring in
quality investors while providing level playing field to domestic and foreign
investors, he added.
He acknowledged the strong commitment and support for the Privatisation
Program and for HBL in particular extended by the President General Pervez
Musharraf, Prime Minister Mir Zafarullah Khan Jamali, Chairman CCOP Federal
Minister for Finance Mr. Shaukat Aziz, Privatisation Commission team,
Governor State Bank of Pakisan Dr. Ishrat Hussain and President HBL Syed Zakir
Hussain, which brought this transaction to the bidding stage.
Earlier, Mr. Ahmad Waqar, Secretary Privatisation Commission gave details
about the bidding process. Both the bidders dropped their sealed bids in a bid
box, which were opened and read out by the representatives of the media.
The bidding results will now be placed before the Privatisation Commission
Board meeting on Tuesday morning under the chairmanship of Dr. Abdul Hafeez
Shaikh Federal Minister for Privatisation & Investment and the Board's
recommendations will be submitted to CCOP, which is meeting shortly.
The CCOP on Friday approved the transaction structure and procedure for the
privatisation of Habib Bank Limited ("HBL"), for the intended sale of 51%
Strategic Stake for acquiring the management control of the Bank by the
prospective pre-qualified bidders.
The pre-qualification committee, which included representatives of
Privatisation Commission, Finance Division and the State Bank of Pakistan had
allowed three parties for pre-qualification for the bidding. The three parties
included Agha Khan Fund for Economic 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.
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"), 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.
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.