March 01, 2007	Thursday	Safar 11, 1428

LAHORE, Feb 28: A Gujrati-speaking UK based investor is said to have shown keen interest in the acquisition of Crescent Standard Investment Bank Limited (CSIBL), which is in dire need of an urgent equity injection for survival.

“The prospective buyer is very keen on acquiring the bank,” Crescent Standard’s administrator Badr-Ud-Din Khan told Dawn by telephone on Wednesday, rejecting the perception that the bank was struggling to survive.

He said the investor had already completed due-diligence of the bank. The process of due diligence, which was allowed after the prospective buyer opened an account of 100,000 euros as an evidence of his interest in the bank, took almost one month to complete, he said.

The interested group is at present said to be preparing its offer with necessary documentation, including a comprehensive business/action plan demonstrating the feasibility of its proposal that will guarantee the protection and payment of depositors and creditors and also ensure long-term solvency of the bank,” a press announcement said. The administrator said the announcement would facilitate this process through direct contact with the entities concerned.

The announcement warned that the “accomplishment of the acquisition essentially warrant full understanding and agreement of all stakeholders, especially depositors and creditors”.

Mr Khan said the negotiations concerning acquisition had progressed well so far and the bank administration was optimistic about a positive result. He did not disclose the name of the interested group or the details of the ongoing negotiations with it. He also refused to say anything on the amount of equity injection the bank requires for long-term survival.

“The interested group does not like to disclose the details at this stage,” he said. The announcement said “as the negotiations involve sensitivity of crucial nature, disclosure of further information at this stage may be detrimental (to the deal)”.

The Securities and Exchange Commission of Pakistan (SECP) on August 30 last year appointed administrator for the Crescent Standard and suspended its board of directors and restrained Anjum Salim from officiating as its CEO.

The unprecedented action was taken under Sections 282E and 282F of the Companies Ordinance, 1984 after months of exhaustive investigations into the bank’s affairs, which revealed severe and deliberate violation of the legal requirements and serious financial irregularities including but not limited to illegal maintenance of parallel accounts, concealment of the bank’s assets, unauthorised massive funding of group owned companies, unlawful investments in real estate and stock market, etc., the commission said in its press announcement issued to explain the reasons behind its action.

The SECP said the administrator had been appointed with a view to taking immediate action for protecting the interests of depositors and stakeholders and for stemming the fast eroding asset base of the bank, and for ensuring that the bank’s affairs were managed in a clean, transparent and professional manner.