BB preparing bidding documents for Oriental Bank sale
Sunday, 18 November 2007
FE Report
The Bangladesh Bank (BB) is now preparing bidding documents to invite six potential investors to buy the shares worth Tk 4.0 billion of the troubled Oriental Bank Limited.
The tender documents are like to be sent to the investors by the end of this month to participate in the bidding process, official sources said.
"We are trying to send the bidding documents to the investors by the end of this month," a BB senior official told the FE Saturday.
He also said that the central bank will give the investors three-week's time to submit their tender documents from the date of receiving such documents.
The BB took the measure exercising due diligence to know the overall position of the bank by the six investors - three foreign and three local - who earlier submitted their expression of interests (EoIs) to buy the shares.
The local parties are BRAC Bank Limited, Summit Industrial & Mercantile Corporation (Pvt.) Limited and Domestic Investors Consortium, a forum comprising local commercial banks and non-banking financial institutions.
The foreign interested companies are the United Kingdom-based East Invest Private Equity Limited, ICB Financial Group Holdings of Switzerland and Hatton National Bank of Sri Lankan.
"A committee will be formed to evaluate the tender documents after receiving bids from the interested parties," the official said, adding that the committee will recommend one investor to buy the shares.
The Oriental Bank that faced a severe financial crisis was taken over by the central bank, which dissolved the bank's board of directors, removed its managing director, and appointed an administrator to run the bank temporarily.
The central bank has planned to complete the implementation of a restructuring scheme after installing a new management of the bank by January 25, 2008.
Under the scheme, approved by the government earlier, the paid-up capital of the bank will reach Tk 7.0 billion while the general shareholders, including its depositors, will hold Tk 3.0 billion in terms of shares. Each share will have a face value of Tk 1000.
There is no scope for extending the moratorium period of the bank further as per the existing rules and regulations, according to the official.
On June 27 last, the government extended the moratorium period on certain banking activities for six more months to protect depositors' interest and facilitate its restructuring.
On January 25 last, the finance ministry imposed a six-month moratorium restricting withdrawal of cash above Tk 10,000 by the depositors. In the case of new accounts, there was no restriction on withdrawal of money during the period.
The central bank took over the overall management of the bank and appointed an administrator on June 19, 2006 to protect the depositors' interest.
On August 6, 2006 the central bank ordered the removal of the managing director of the bank and suspended its board of directors for a period of one year.
The Oriental Bank Limited started its operation on May 20, 1987 under the name of Al Baraka Bank Bangladesh Limited.
The bank is now running its business through 30 branches across the country, where a total of 713 employees are engaged at different levels.
The Bangladesh Bank (BB) is now preparing bidding documents to invite six potential investors to buy the shares worth Tk 4.0 billion of the troubled Oriental Bank Limited.
The tender documents are like to be sent to the investors by the end of this month to participate in the bidding process, official sources said.
"We are trying to send the bidding documents to the investors by the end of this month," a BB senior official told the FE Saturday.
He also said that the central bank will give the investors three-week's time to submit their tender documents from the date of receiving such documents.
The BB took the measure exercising due diligence to know the overall position of the bank by the six investors - three foreign and three local - who earlier submitted their expression of interests (EoIs) to buy the shares.
The local parties are BRAC Bank Limited, Summit Industrial & Mercantile Corporation (Pvt.) Limited and Domestic Investors Consortium, a forum comprising local commercial banks and non-banking financial institutions.
The foreign interested companies are the United Kingdom-based East Invest Private Equity Limited, ICB Financial Group Holdings of Switzerland and Hatton National Bank of Sri Lankan.
"A committee will be formed to evaluate the tender documents after receiving bids from the interested parties," the official said, adding that the committee will recommend one investor to buy the shares.
The Oriental Bank that faced a severe financial crisis was taken over by the central bank, which dissolved the bank's board of directors, removed its managing director, and appointed an administrator to run the bank temporarily.
The central bank has planned to complete the implementation of a restructuring scheme after installing a new management of the bank by January 25, 2008.
Under the scheme, approved by the government earlier, the paid-up capital of the bank will reach Tk 7.0 billion while the general shareholders, including its depositors, will hold Tk 3.0 billion in terms of shares. Each share will have a face value of Tk 1000.
There is no scope for extending the moratorium period of the bank further as per the existing rules and regulations, according to the official.
On June 27 last, the government extended the moratorium period on certain banking activities for six more months to protect depositors' interest and facilitate its restructuring.
On January 25 last, the finance ministry imposed a six-month moratorium restricting withdrawal of cash above Tk 10,000 by the depositors. In the case of new accounts, there was no restriction on withdrawal of money during the period.
The central bank took over the overall management of the bank and appointed an administrator on June 19, 2006 to protect the depositors' interest.
On August 6, 2006 the central bank ordered the removal of the managing director of the bank and suspended its board of directors for a period of one year.
The Oriental Bank Limited started its operation on May 20, 1987 under the name of Al Baraka Bank Bangladesh Limited.
The bank is now running its business through 30 branches across the country, where a total of 713 employees are engaged at different levels.