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On the request of the prospective bidders and an overwhelming response
witnessed to the invitation of Expression Of Interests (EOIs) for the
privatisation of SME Bank Ltd., the Privatisation Commission (PC) has extended
the last date for submission of Expression Of Interests (EOIs) and Statement
Of Qualifications (SOQs) to May 31, 2008. All other terms and conditions will
remain the same. Earlier, the last date to receive EOIs & SOQs was May 17,
2008.
The Privatisation Commission (“PC”) has invited Expression of Interest (EOI)
from reputed Pakistani and / or International parties / consortia who have an
interest in entering the process towards acquiring 93.88% strategic
shareholding in SME Bank Limited (“SME Bank”) along with transfer of
management control to a strategic investor. The early submission of EOI will
enable the interested parties to avail maximum time for the submission of
Statements of Qualifications (SOQs).
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. The
leasehold land appearing in the books will not be a part of the transaction
and will be returned to the lessor before the sale. 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.
Detailed transaction structure and conditions form a part of the pre-bid
documents that would be issued to parties with relevant credentials who submit
a formal EOI and / or are pre-qualified parties as the case may be. 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.
The PC has asked the potential parties to submit EOI including, Name & address
of the party / consortium, Date and place of incorporation, Nature of business
and other background information, Experience in the banking / financial
sector, Audited Financial Statements and detail of ownership structure.