ISLAMABAD, April 12: The Privatisation Commission (PC) invited expressions of interest (EoIs) on Saturday for disinvestment of 93.88 per cent government shareholding in SME Bank along with management control.

According to a PC statement the early submission of EoIs would enable the interested parties to avail maximum time for the submission of statements of qualifications (SoQs). The last date to receive SoQs is May 17, 2008.

SME Bank’s privatisation represents an attractive investment opportunity for investors interested in entering into the commercial banking market of Pakistan. The bank has an unrestricted commercial banking licence covering banking activities in the country.

It is a public limited company, incorporated in Pakistan on October 30, 2001. At present, it has 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. It also holds a 73 per cent 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 that the potential buyer will have to retain the name ‘SME Bank Ltd.’ for one year and its charter will be maintained for at least three years after its 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.

The government 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 and 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.