ISLAMABAD, July 2: The Privatization Commission has received an encouraging response from 19 local and international groups to purchase 26-51 per cent shares of Habib Bank Ltd.

The Privatization Commission said it had received 19 expressions of interest (EoIs) from around the world for the privatization of Habib Bank Limited. The terms of sale also include the transfer of management control of HBL.

The investors who have expressed interest for HBL include parties from Canada, Europe, the UK, the USA, Saudi Arabia, the UAE, Qatar and Yemen along with domestic interest.

Pre-qualification documentation detailing the information required for screening interested parties and a preliminary information memorandum is being provided to all those parties who have submitted EoIs.

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 other countries where it is present.

The bank has an extensive domestic network consisting of 1,425 branches with a market share of approximately 20 per cent. It operates a large international network of 48 branches in 26 countries spread over Europe, the Middle East, Far East, Asia, Africa and the United States.

HBL operates three wholly-owned subsidiaries — Habib Bank Financial Services (Pvt) Ltd (Karachi), Habib Finance International Ltd (Hong Kong) and Habib Finance Australia Ltd (Sydney); two joint ventures namely Habib Nigeria Bank Ltd with 40 per cent shares and Himalayan Bank Ltd with 20 per cent shares.

In addition, HBL owns 90.5 per cent shares in Habib Allied International Bank Plc, a bank incorporated in the UK. The bank also has two representative offices in Iran and Egypt.

It is envisaged that once the selection of pre-qualified potential investors has been made, participants in the process shall be provided with additional information on HBL, whereupon the Privatization Commission together with its appointed advisers A.F. Ferguson & Co and legal advisers Haidermota & Co will commence with a competitive bid, negotiation and sale process in accordance with the privatization laws.

An extensive streamlining and restructuring programme is currently being implemented by the HBL management towards the preparation for the privatization.