|
|
|
|
|
The Privatisation Commission (“PC”) has received an overwhelming response
in the shape of 19 Expressions of Interest (EOIs) from reputed Pakistani and
International parties / consortia who have expressed their interest in
entering the process towards acquiring 93.88% strategic shareholding in SME
Bank Limited (“SME Bank”) along with transfer of management control. The last
date for receiving EOIs was May 31, 2008.
The parties, which have submitted their EOIs include1. Pak Kuwait Investment
Company, 2. Orascom Telecom Holding SAE, 3. Citigroup Venture Capital
International Investment G.P, 4. Commercial Bank of Kuwait, 5. Global
Investment House K.S.C, 6. Gulf Cap FZC, 7. KASB Bank Limited, 8. Kohinoor
Textile Mills and Mechantbridge Holdings S.A. Luxembourg, 9. Al Nakeel
Investment LLC on behalf of Emirates Investment Group, 10. Hashwani Hotels
Limited, Pakistan Services Limited, and The International Investor, Kuwait,
11. Security Investment Bank Limited, 12. Pak Libya Holding Company, 13. Pak
Brunei Investment Company, 14. Associated Group, 15. Pak Steel, 16. Invest
Bank, 17. Oracap Holdings, 18. Noor Financials and 19. IGI Investment Bank.
BMA Capital Management is the Financial Advisor for the transaction.
SME Bank's privatisation represents an attractive investment opportunity for
investors interested in entering into the commercial banking market of
Pakistan. SME Bank has an unrestricted commercial banking license covering
banking activities in Pakistan.
SME Bank is a public limited company, which was incorporated in Pakistan on
October 30, 2001. At present, SME Bank has employee strength of approximately
630 permanent and contractual individuals and is operating through a diverse
network of 27 branches, which include 13 active commercial branches. According
to JCR-VIS Credit Rating as on February 22, 2007. SME Bank was rated BBB for
long-term and A-2 for short-term credits. SME Bank also holds a 73% share in
SME Leasing Limited, listed on the Lahore Stock Exchange (“LSE”), which was
incorporated as a wholly owned subsidiary of SME Bank.
The Salient Features of the transaction include divestment of 93.88% GOP
shareholding along with transfer of management control. The SME Bank has an
unrestricted commercial banking license. The potential buyer will have to
retain the name 'SME Bank Ltd.' For one-year post privatisation. The charter
of SME Bank to be maintained for at least three years post privatisation. All
permanent employees will be offered a severance package.. GOP will keep the
right to appoint at least one director on the board of directors of SME Bank
post privatisation.
All terms and conditions relating to privatisation of SME Bank shall be
communicated to all pre-qualified bidders from time to time before the bid
date.