ISLAMABAD, June 2: The Privatisation Commission has received expressions of interest (EoIs) from reputed Pakistani and international parties, which have expressed interest in acquiring 93.88 per cent strategic shareholding in SME Bank Limited along with transfer of management control.

The last date for receiving EoIs was May 31, 2008.

The parties, which have submitted EoIs include: Pak Kuwait Investment Company, Orascom Telecom Holding SAE, Citigroup Venture Capital International Investment G.P, Commercial Bank of Kuwait, Global Investment House K.S.C, Gulf Cap FZC, KASB Bank Limited, Kohinoor Textile Mills and Merchantbridge Holdings S.A. Luxembourg, Al Nakeel Investment LLC on behalf of Emirates Investment Group, Hashwani Hotels Limited, Pakistan Services Limited, and The International Investor, Kuwait, Security Investment Bank Limited, Pak Libya Holding Company, Pak Brunei Investment Company, Associated Group, Pak Steel, Invest Bank, Oracap Holdings, Noor Financials and IGI Investment Bank.

BMA Capital Management is the Financial Adviser for the transaction.

According to the PC, the SME Bank’s privatisation represents an attractive investment opportunity for investors interested in entering into the commercial banking market of Pakistan.

The SME Bank has an unrestricted commercial banking license covering banking activities in Pakistan.

The SME Bank is a public limited company, which was incorporated in Pakistan on October 30, 2001.

At present, the bank has the 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, the SME Bank was rated BBB for long-term and A-2 for short-term credits. The bank also holds a 73 per cent share in SME Leasing Limited, listed on the Lahore Stock Exchange, which was incorporated as a wholly-owned subsidiary of SME Bank.

The salient features of the transaction include divestment of 93.88 per cent of GoP shareholding along with transfer of management control. The potential buyer will have to retain the name ‘SME Bank Ltd’ for one year after privatisation. The charter of SME Bank will be maintained for at least three years post- privatisation.

All permanent employees will be offered a severance package. The GoP will keep the right to appoint at least one director on the board of directors of the 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.