FIRST Rs 11b HBL TRANCHE AFTER EID - 2004-01-28
ISLAMABAD: The Aga Khan Fund for Economic Development (AKFED) will pay Rs 11 billion, or 52% of the bid price, soon after Eid-ul-Azha as the first instalment to acquire management control of Habib Bank Limited (HBL) while the rest of the amount will be paid within the next two years, a senior official of the Privatisation Commission said here Tuesday.
A committee of cabinet ministers is working out a strategy for the privatization of Pakistan Telecommunication Company Limited (PTCL) and will finalize its recommendations before June this year.The committee comprising ministers and senior officials have been asked to recommend the best possible strategy for the privatization of PTCL. Well-placed sources say the committee is confronted with a pressing issue, that is, if PTCL is offered to a single group of strategic investor it will create a giant monopoly.
The Aga Khan Fund for Economic Development (AKFED) will pay Rs 11 billion, or 52% of the bid price, soon after Eid-ul-Azha as the first instalment to acquire management control of Habib Bank Limited (HBL) while the rest of the amount will be paid within the next two years, a senior official of the Privatisation Commission said here Tuesday.After the first instalment, the remaining amount of Rs 11.409 billion, or 51.85 percent, will be paid by the AKFED in two years along with a certain amount of mutually agreed mark-up, he added.
The buyers of Habib Bank Ltd have decided to retain its senior officials including President Zakir Mahmood. They will take over the bank management after paying for 26 per cent of the bank shares in the middle of next month.HBL sources told Dawn the Aga Khan Fund for Economic Development Fund (AKFED) that bought 51 per cent HBL shares last month had asked Mr Mahmood to continue as its president with his present team. They said the Fund had apprised the State Bank of its decision to retain Mr Mahmood, and the central bank had approved it.
The Aga Khan Fund for Economic Development has submitted the names of four directors, Iain Cheyne, Sajid Zahid, Sultan Allana and Zakir Mahmood, as its nominees on the Board of Directors of Habib Bank Limited, to be inducted after handing over of the bank to the AKFED.
Sultan Allana will be the Chairman of the Board, while Zakir Mahmood will continue as the President and Chief Executive Officer of the bank.
Business Recorder understands that the ceremony of completing the privatisation transaction will take place some time in mid-February.
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