ISLAMABAD, Sept 5: The Consortium of Abu Dhabi & Bestway Group on Thursday succeeded in acquiring majority shares of the United Bank Limited (UBL) by increasing their bid from Rs12.3 billion to Rs12.35 billion.

The consortium will now be issued Letter of Acceptance by the Privatization Commission (PC) within 24 hours to take over 51 per cent shares of the UBL along with transfer of management.

The representatives of all the three pre-qualified bidders were present on the occasion. However, only Abu Dhabi group took part in the fresh bidding, and increased its bid to Rs12.35 billion.

The Muslim Commercial Bank (MCB) group, which was the highest bidder in the previous bidding by giving a Rs 12 billion bid, did not opt for the fresh bidding.

When asked by the Minister for Privatization, Altaf M. Saleem and other officials of the Privatization Commission to take part in the bidding, the representatives of the MCB group said that they were here only as an observer and have no plan to take part in the fresh bidding.

“We have given in writing our point of view to the PC and we are sticking to it,” said Ali Munir of MCB group.

As soon as the Abu Dhabi group gave in writing its final bid of Rs12.35 billion it was declared a winner. The bidding started with a floor price of Rs12.3 billion in which the minimum jump was Rs50 million to increase the bid.

“The UBL goes to Abu Dhabi and Bestway group,” announced Director General Banks and Transactions of the PC, Abdul Hafeez Mirza who conducted the bidding process. The bidding ceremony was attended by a large number of businessmen, bankers and the representatives of print and electronic media.

“We are very happy to acquire the UBL,” said Mr. Pervez of Abu Dhabi and Bestway consortium after the bidding.

Later, Minister for Privatization Altaf Saleem told reporters that the purpose of the PC was to ensure a transparent bidding process and at the same time to ensure maximization of the transaction.

“Our reference price for UBL was Rs11.8 billion and we eventually got Rs12.35 billion, therefore we are equally happy,” he said.

He said that increased bid money will help the government to retire a considerable foreign debt and spend more money on poverty alleviation.

This was the second bidding for the UBL. In the previous bidding MCB group was declared the highest bidder with Rs12 billion followed by Abu Dhabi and Bestway Consortium and Union Bank group they offered Rs4.8 billion and Rs4.5 billion respectively for majority shares of the UBL.

However, the Abu Dhabi group later unilaterally increased its bid price from Rs4.8 billion to Rs12.3 billion, which created a stir in the government and business quarters. The MCB group was declared as the highest bidder through a formal process of bidding.

The hue and cry led to the decision by the Cabinet Committee on Privatisation (CCoP) headed by the minister for finance to hold the fresh bidding.

The representatives of the MCB group when asked whether they will go to the court to get the new decision reversed, they said they have not decided about it.

The minister for privatization when asked that MCB might go to the court, he said they could go to any court to seek justice. “I am sure no court will say that the government should accept less money for state assets,” he said.

Responding to a question, he said that now the Abu Dhabi group will deposit 50 per cent payment within 7 days while the remaining 50 per cent payment will have to be made in 45 days to formally get the UBL.

The UBL deal, he said, will pave the way for the privatization of the Habib Bank Ltd (HBL) within this year.

UBL is the 4th largest bank in Pakistan. It has a 9 per cent market with 1,101 branches across Pakistan as well as a valuable franchise of 16 international branches in the US, and the Middle East, with a subsidiary in Switzerland, rep offices in Egypt and Iran and a 55 per cent stake and management control in UK-based join venture with 7 branches and a 25 per cent stake in a joint venture in Oman.