ISLAMABAD, Nov 24: The Privatization Commission has received 10 Expressions of Interest (EoIs) for the disinvestment of remaining 49 per cent shares in the Allied Bank of Pakistan (ABL), but the authorities concerned are reluctant to give the names and other details of the interested parties.

Informed sources said here on Saturday that November 20 was the last date for receiving the EoIs, which has passed but the PC officials were unwilling to announce the names of the interested parties.

When contacted no satisfactory reply was offered by the PC officials but sources said that couple of new parties were likely to be included in the list which was why the matter was being delayed. It was also said that delay was causing because the interested parties wanted to take some more time to complete due diligence as some of them did not fulfil the criteria prescribed for taking part in the bidding.

Sources said that Muslim Commercial Bank (MCB), Union Bank and Mahtab Group were among those parties which had submitted EoIs for taking part in the bidding of the remaining shares of the ABL. Mahtab group was allowed to take part in the bidding in the first phase of ABL privatization due to various objections, raised by the State Bank of Pakistan.

“Efforts are being made by some people in the Privatization Commission to include two more parties, each from America and Jordan and that is why the PC is not announcing the names of the parties, although last date has passed and they are supposed to announce all the details,” a source said.

A consortium led by ABN Amro Bank and Khadim Ali Shah Bukhari & Company Limited (KASB) has been mandated to act as financial advisors to the Privatization Commission in all respect of the disinvestment of the ABL. The PC intends to divest 49 per cent shares (exactly 48.88 per cent) in ABL by way of offer for sale to the general public through the domestic capital market. To this end the PC is seeking to appoint underwriters (individual or in a consortium) who are willing to underwrite the entire offer.

Under the Employees Stock Ownership Plan (ESOP) approved by the government of Pakistan in 1991, the employees of the ABL were to buy and manage the Bank. The Allied Bank Management (AMG) representing the employees of the ABL, purchased 26 per cent of total shares at a price of Rs70 per share leading to the transfer of management. Under the sale agreement, AMG had an option to acquire further 25 per cent shares of the share capital at the same price within one year of the first sale. The second transaction was concluded in August 1993, resulting in AMG’s owning 51 per cent of ABL.

ABL is one of the largest private banks in Pakistan in terms of assets, deposits and advances. As of December 31, 1999, the Bank had 925 branches nationwide; total assets of Rs106.9 billion; total deposits of Rs93.1 billion with over 3.5 million account holders; total gross advances of Rs50.8 billion; and the number of employees was in excess of 8,000.