OUT OF PROCESS OFFER FOR HABIB BANK LIMITED - AN ATTEMPT TO MISLEAD THE PUBLIC-PC Spokesman
Islamabad, December 31,2003

A spokesman for the Privatisation Commission while referring to a news report published in a section of the press today regarding an out of process offer for Habib Bank Limited stated here today that it was an attempt to mislead and misguide the public.

He said that the parties who had submitted Expressions of Interest for HBL by June 30, 2003 were required to submit their Statement of Qualification (SOQ) for pre-qualification to participate in the bidding process of the Bank. The pre-qualification process was undertaken by the representatives of PC, SBP and Finance Division. On the basis of the SOQs of the parties detailed analysis regarding their competence to acquire a commercial bank was prepared by A. F. Ferguson & Co, an affiliated firm of PricewaterhouseCooper, he said.

The spokesman further said that six parties were permitted to enter the Data  Room opened on September 8, 2003 prior to their pre-qualification for bidding. However, only three parties conducted the due diligence of the Bank. These three parties including Agha Khan Fund for Economic Development, Central Insurance Company Limited and State of Qatar Supreme Council for Economic Affairs and Investment were all pre-qualified by the Committee for the bidding. All the key issues were resolved and the bidding process was made known to the potential pre-qualified bidders during two pre-bid conferences, he added.

He mentioned that the party making an out of process offer did not enter the  Data Room for due diligence opened four months back. He asked that if they  did not have access to the Data Room, then on what basis did they assign a  value to HBL? What does this say about the capability and quality of a  party, its directors and about its corporate responsibility when, without the data required to assess the value of HBL, it generates a totally wild number and apparently could not even generate $10,000/- to pay for the data room entry fee.

He further clarified that the Pre-qualification Committee did not recommend the party for pre-qualification on the basis of incomplete information, lack of managment capability, unreliable financial information and overall lack of demonstrable capability. The party in a letter also informed the Privatisation Commission that they did not need to conduct a due diligence exercise and so did not require access to the HBL Data Room as they had all the information required by them to proceed further with the bidding process. Such a statement is sufficient evidence of their lack of seriousness and capability for acquiring any asset let alone HBL.

He added, that any offer, at this stage, by an out of process party is a clear attempt to undermine a successful privatisation. There were good reasons to believe that the party was acting as a front for the lobby opposing an open, fair, transparent and successful privatisation and be ignored.