ISLAMABAD, March 22: The Privatization Commission on Saturday received highest bid of Rs786.786 million to transfer the management rights for Investment Corporation of Pakistan State Enterprise Mutual Fund (ICP-SEMF) from the PICIC.

The bid opening ceremony was held under the chairmanship of Prime Minister’s Adviser on Privatization and Investment, Dr Abdul Hafeez Shaikh.

The four interested parties who have deposited their earnest money for participation in the bidding for ICP SEMF included ABAMCO Limited, Arif Habib Investment Management Limited, Consortium of (Pakistan Kuwait Investment Company (Pvt) Ltd/ Al-Meezan Investment Management Limited) and Pakistan Industrial Credit & Investment Corporation Ltd (PICIC) dropped their bids in a transparent bid box, which were opened by the representatives of the print and electronic media.

According to a PC announcement, the bids received were respectively ABAMCO Limited (Rs650m), Arif Habib Investment Management Limited (Rs610m), Consortium of Pakistan Kuwait Investment Company (Pvt) Ltd/Al-Meezan Investment Management Limited (Rs475m) and Pakistan Industrial Credit & Investment Corporation Ltd (Rs786.786 million).

The lowest bid from the Consortium of Pakistan Kuwait Investment Company (Pvt)/Al-Meezan Investment Management Limited was dropped from the second round, however, the rest of the three highest bidders were asked to raise their bids with a multiple of Rs2.5 million. Having no response from any party PICIC was declared as the highest bidder.

The highest bid will now be considered after a clearance from the SECP in the newly constituted PC Board to formulate their recommendations for approval of the Cabinet Committee on Privatisation (CCoP). The PC Board is expected to meet in the first week of April 2003.

The ICP SMEF has a capital of Rs840 million and its Net Asset Value as on October 11, 2002 is Rs2667 million.

Addressing the bid opening ceremony Dr Hafeez Shaikh, who is also chairman of the Privatization Commission, said that the government was committed to the privatization process and acceleration would be witnessed in this regard in the coming days. He expressed the hope that Saturday’s bidding would set a motion for the upcoming big ticket transactions.

Senator Shaikh said that Rs3.9 billion proceeds have been realized from the sale of the remaining shares of the MCB, the DG Khan Cement, the Attock Refinery Limited (ARL) and the Pakistan Oilfields (POL) through stock market, out of which Rs2.9 billion were received by the present government. Having encouraging response and with an objective to deepen and broaden the stock market the government was considering to divest shares of the National Bank of Pakistan (NBP), the Pakistan Telecommunication Company Limited (PTCL), the Sui Southern Gas Company (SSGC), the Pakistan International Airlines Co (PIAC), the Oil and Gas Development Company Limited (OGDCL) and other entities through stock market besides the efforts undertaken for the strategic sale of some of the mega entities such as the Habib Bank Limited (HBL), the PTCL, the Karachi Electric Supply Corporation (KESC), the OGDCL, etc., he added. The PC Board and the CCoP will determine the quantum of shares being offered.

Later talking to reporters, the advisor said that the government intended to bring efficiency in private sector through privatization of public sector entities, which would reduce the cost of business. Terming the ICP SEMF a major transaction he hoped that it would give boost to the privatization process and increase the private sector role in the financial sector. The National Investment Trust Limited (NITL) transaction would be taken up soon after the bidding of the PSO, targeted on April 26, 2003, he said.