Reuters
KARACHI: Egyptian billionaire Naguib Sawiris is among four parties competing for a majority stake in Pakistan s Saudi Pak Bank, in a sale expected to raise over $100 million, banking sources said on Tuesday.
The small lender with a market capitalization of just over $150 million is majority owned by the Saudi Pak Industrial and Agricultural Investment Co., a joint venture between the governments of Pakistan and Saudi Arabia.
Foreign interest in Pakistani companies has grown over the last year or so, thanks to financial reforms that have laid the platform for rapid growth and rising incomes.
Most of the deals have been in the banking sector. No new licenses are being issued, except for Islamic banking, so foreigners keen to enter the market must buy into existing players.
Orascom Telecom Chairman Sawiris will compete with Commercial Bank of Kuwait, Pakistan s KASB Bank, and a consortium of Bank Muscat, Actis Capital of UK, and Nomura Securities of Japan, said a source involved in the deal.
Ex-banker Shaukat Tarin, the chairman of the Karachi Stock Exchange, is also part of this consortium, said the source.
It was unclear whether Sawiris would bid for a stake through Orascom Telecom or some other holding company.
The price offered by these parties ranges between 26 rupees and 32 rupees a share, the source said. Other banking sources confirmed the price range.
The seller will probably narrow down these bidders to one over the next two or three weeks, and then negotiate with that party, the source said.
Banking sources said Saudi Pak s sponsors were interested in selling between 51 percent and 68 percent of the bank. Its share price was at 24.50 rupees at 0745 GMT, valuing the company at around $156 million.
At the end of March, Saudi Pak Bank had assets of 63.85 billion rupees ($1.06 billion) and deposits of 46.7 billion rupees.
