KARACHI, July 31: Employees Old Age Benefits Institution (EOBI) proposes to divest its strategic shareholding with management control in Universal Leasing Corporation Limited. EOBI has sought approval/NOC from the Director NBFC, Specialised Companies Division, Securities & Exchange Commission of Pakistan (SECP) for the transaction.

The Institution has plans to divest its 51 per cent shareholding along with management control in Universal Leasing Corporation through open competitive bidding/newsprint publication.

"Therefore, EOBI plans to invite Expressions of Interest (EoIs) from prospective corporate investor groups/companies around the country/abroad through newsprint media publications," said Nuruddin Sarki & Co - the institution's advocates & Legal Counsellors.

They said that Universal Leasing Corporation Limited was conducting major leasing operations through its head office in Karachi and a branch office in Lahore. The draft copy invited EOIs from corporate sector strategic investor groups/ companies along with following terms & conditions: (1) The EoIs to be filed by the prospective investor groups/companies latest by dated (yet to be decided) 2004. (2) The prospective bidders/investors to enclose a corporate profile of business/ group and relevant background in the corporate sector and (3) The EOI be filed along with a bank pay order/demand draft of Rs25 thousand as a up front/non-refundable processing fee drawn in favour of EOBI, head office, Karachi.

Universal Leasing Corporation is a publicly traded company at the Karachi Stock Exchange. The market price of its 10-rupee stock is currently at a discount of 5 per cent. The company holds Rs210 million in paid-up capital.

The SECP annual report 2003 put the total assets of Universal Leasing Corporation at Rs254 million; total equity at Rs151 million and net investment in leases Rs50 million. The company was established on July 29, 1993 and began operations in April 1995 with a capital base of Rs110 million. As a result of its earlier merger (first in the leasing sector) with Mercantile Leasing Company Limited, the company increased its capital to Rs210 million.