July 19, 2002	Friday	Jamadi-ul-Awwal 8, 1423

ISLAMABAD, July 18: The Privatization Commission Board here on Thursday accepted the increased bid of Rs12 billion by the Muslim Commercial Bank (MCB) group to seek majority shares in the United Bank Limited (UBL).

“Our reference price was Rs11.8 billion but the MCB group revised its bid price from Rs8.5 billion to Rs12 billion, which is pretty good,” said Minister for Privatization Altaf M. Saleem.

Talking to Dawn, he said that the PC Board will now recommend to the Cabinet Committee on Privatisation (CCoP) to approve the increased bid offered by the MCB group for acquiring 51 per cent government shareholding in the UBL. The CCOP is expected to meet on Tuesday.

“From our side every thing is OK now,” he said adding that the PC Board has taken into account all aspects of the deal, and then decided to recommend the issue to the CCoP for approval.

After the approval of the COOP, the minister for privatisation said, the matter will be referred to the State Bank of Pakistan, which was the regulator of all the Nationalised Commercial Banks (NCBs).

Now, he pointed out, the MCB group will have to submit a revised funding plan to the central bank and if failed to do so then the PC will ask the second highest bidder - Abu Dhabi (UAE) and Bestway Holding UK Group to match the new bid.

Responding to a question he said that MCB group had earlier submitted its funding plan to the central bank on the basis of its earlier offer of Rs8.5 billion. “But now they will have tell how would they mange extra Rs3.5 billion in their new funding plan,” he added.

“The funding plan is a very important issue and if the MCB group does not come up with certain acceptable plan, we have the right to decline the new offer,” the minister for privatization said.

He was asked to comment on a statement given by a representative of Alfalah Bank that Abu Dhabi and Bestway consortium was ready to match the MCB bid and was even ready to offer more for the UBL. “My simple question is why had they earlier given the bid of Rs4.8 billion and now all of a sudden they are saying that they are ready to match the highest bid,” the minister for privatization replied. “Perhaps their motive was to loot the UBL by giving such a low bid,” he added.

A senior representative of Bestway Holding and former federal secretary, Mazhar Rafi when contacted said that Alfalah Bank had been appointed as the lead manger to look after the interests of both Abu Dhabi group and the Bestway Holding, UK.

“But all I cay say that both Abu Dhabi and Bestway Holding do not have any objection as the process of privatization of the UBL has been highly transparent,” Mazhar Rafi said.

“The fact of the matter is that Abu Dhabi and Bestway Consortium was the second highest but now we accept that MCB group being the highest bidder has increased its bid to Rs12 billion and as such they deserve to acquire the UBL,” he said

He said his consortium has submitted Expression of Interest (EOI) for participating in the privatization of the Habib Bank Limited (HBL) and Thatta and Javedan cement factories.

The PC Board also reviewed the progress made for the privatization of Oil and Gas Development Company Limited (OGDCL), Pakistan Telecommunication Company limited (PTCL) and Karachi Electricity Supply Corporation (KESC).

The board further took note of the progress of the disinvestment of additional 5 per cent shares of National Bank of Pakistan (NBP), nine per cent remaining shares of the MCB and the privatization of the Investment Corporation of Pakistan(ICP).

It was also decided to include Peshawar Electric Supply Company (PESCO) in the privatization programme, based on the recommendations of the chairman, Water and Power Development Authority (Wapda).

Earlier, the PC Board reviewed the implementation status of the decisions taken regarding various other transactions.