Potential buyers line up to buy Oriental shares
Tuesday, 4 September 2007
FE Report
Potential investors, both local and foreign, have started to contact the authorities concerned for purchasing shares worth Tk 4.0 billion of the troubled Oriental Bank Limited, official sources said.
At least four local and foreign investor groups and companies have already contacted with the authorities concerned of Bangladesh Bank (BB) to learn about the details of the bank indicating their interest to purchase the shares.
A delegation from Dubai will arrive in Dhaka today (Tuesday) as advance delegation of a business group to know about the overall financial position of the Shariah-based Oriental Bank.
"A local representative of the company has informed us about the arrival of the delegation," a BB senior official told the FE Monday, adding that a London-based investment company also showed their interest to purchase the shares of the bank.
Besides, the Domestic Investors Consortium, a forum comprising local commercial banks and non-banking financial institutions and the Overseas Welfare Association, a venture of Bangladeshi expatriates residing in different parts of the world, have already contacted with the authorities concerned in this connection.
"We are hopeful of getting responses from more potential investors to buy the shares of the bank," another BB senior told the FE, adding that the interested investors will have to submit their expression of interest (EoI) to the central bank by September 23.
The central bank will prepare a short-list of the interested parties from among those who will submit the EoI's on the basis of BB's 'Fit and Proper Test'. The short-listed bidders will then be contacted for purchasing tender documents to participate in the financial bidding process, the sources added.
On June 27 last, the government extended the moratorium on certain banking activities of the bank for six more months to protect depositors' interest and facilitate its restructuring.
On January 25 last, the finance ministry imposed six-month moratorium first to put restriction on withdrawal of cash above Tk 10,000 by the depositors. In case of new deposits, there is 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 the board of directors for a period of one year.
The Oriental Bank Limited, a private commercial bank, 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.
Potential investors, both local and foreign, have started to contact the authorities concerned for purchasing shares worth Tk 4.0 billion of the troubled Oriental Bank Limited, official sources said.
At least four local and foreign investor groups and companies have already contacted with the authorities concerned of Bangladesh Bank (BB) to learn about the details of the bank indicating their interest to purchase the shares.
A delegation from Dubai will arrive in Dhaka today (Tuesday) as advance delegation of a business group to know about the overall financial position of the Shariah-based Oriental Bank.
"A local representative of the company has informed us about the arrival of the delegation," a BB senior official told the FE Monday, adding that a London-based investment company also showed their interest to purchase the shares of the bank.
Besides, the Domestic Investors Consortium, a forum comprising local commercial banks and non-banking financial institutions and the Overseas Welfare Association, a venture of Bangladeshi expatriates residing in different parts of the world, have already contacted with the authorities concerned in this connection.
"We are hopeful of getting responses from more potential investors to buy the shares of the bank," another BB senior told the FE, adding that the interested investors will have to submit their expression of interest (EoI) to the central bank by September 23.
The central bank will prepare a short-list of the interested parties from among those who will submit the EoI's on the basis of BB's 'Fit and Proper Test'. The short-listed bidders will then be contacted for purchasing tender documents to participate in the financial bidding process, the sources added.
On June 27 last, the government extended the moratorium on certain banking activities of the bank for six more months to protect depositors' interest and facilitate its restructuring.
On January 25 last, the finance ministry imposed six-month moratorium first to put restriction on withdrawal of cash above Tk 10,000 by the depositors. In case of new deposits, there is 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 the board of directors for a period of one year.
The Oriental Bank Limited, a private commercial bank, 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.