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The privatisation of Habib Bank Limited is a historic and the country's
biggest strategic sale in the financial sector and we expect that the new
buyer will improve the bank's network in central Asia, Europe and other parts
of the world to turn the bank into a prestigious Pakistani Bank. Dr. Abdul
Hafeez Shaikh stated this while addressing the ceremony held for the transfer
of the management of Habib Bank Limited to Aga Khan Fund for Economic
Development (AKFED) here today.
He said that the Government of Pakistan still held 49 % of the shareholding in
the bank and the government would benefit from the future earnings from the
bank as recently witnessed in case of 22.5 % dividend from United Bank
Limited. It would also improve the overall banking and the financial sector of
Pakistan, he hoped.
We had given protection to the employees and every organisation required more
employees to expand their area of activity and to generate maximum profits and
obviously the best performers would get raise in their emoluments and advanced
training to improve their skills, he stated.
He further added that the upcoming transactions in the financial sector
included Allied Bank Limited and National Investment Trust, while other major
transactions to be privatised include Pakistan State Oil, Jamshoro Power
Company, Faisalabad Electric Power Company, Pakarab Fertilizers Company and
Capital market transactions of Pakistan Petroleum Limited, Pakistan
International Airlines, Kot Adu Power Company and at a later stage the share
offering of United Bank Limited.
While expressing his thanks to the President General Pervez Musharraf and the
Prime Minister Mir Zafarullah Jamali, Dr. Abdul Hafeez Shaikh said that
without such top level commitment the completion of such historic transaction
could not have been possible and the most transparent process at all levels
appreciated by everyone was also a matter of satisfaction and encouragement.
He said that the past 12 month were greater in the history of the country's
privatisation, when we were able to accomplish transactions worth Rs.42
billion.
Addressing on this occasion Mr. Shaukat Aziz, Federal Minister for Finance
said that the Privatisation Program was the pillar of the country's economic
reforms and it was the policy of the government to put more assets for the
private sector, which was a global phenomena. HBL was an Icon of our
structural reforms and we were handing over a jewel of our national assets
with a bit of heavy heart and now the greater responsibility lie with the new
management. The government had launched a series of structural reforms, which
had strengthen the institutions with independence and we were able to improve
the environment for the banks to grow, he added.
Mr. Ahmad Waqar, Secretary Privatisation Commission said that the
privatisation of HBL was the manifestation of the government's commitment to
the continuity of the economic reforms agenda.
Later, Mr. Ahmad Waqar, Secretary Privatisation Commission and Mr. Sultan
Allana, representative of Aga Khan Fund for Economic Development signed and
exchanged the documents of the transfer of management agreement in the
presence of Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation &
Investment, Mr. Shaukat Aziz, Minister for Finance, Mr. Iain Cheyne, Director
AKFED and the senior officers of Finance Division, State Bank of Pakistan and
HBL.
On December 29, 2003, AKFED gave the highest bid of Rs. 22. 409 billion for
acquiring 51 % Strategic stake and acquiring the management control in Habib
Bank Limited (HBL), the country's first ever biggest transaction in the
history of Pakistan's privatisation.
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.
PC Board has given their nod for the highest bid while Cabinet Committee on
Privatisation gave approval to the bid and declared AKRFD as successful
bidder.
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 were resolved and the bidding process was 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 25
offshore locations 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.