August 20, 2020 (MLN): MCB Bank Limited has withdrawn from the ongoing due diligence of SME Bank Limited as the Management of MCB wishes to concentrate solely on its existing business for the time being due to increased uncertainty as a result of Covid-19 outbreak.
For the unversed, Privatization Commission, GoP, advertised in December 2019 the privatization of SME Bank Limited via sale of 93.88% shares therein to a strategic buyer.
Accordingly, MCB Bank Limited submitted an Expression of Interest to the Privatization Commission on December 16, 2019, and consequently received a Request for Statement of Qualification {RSOQ) issued by the Privatization Commission in respect of the proposed transaction.
In response to the RSOQ, MCB Bank Limited submitted a Statement of Qualification (SOO) to the Privatization Commission on February 07, 2020, following which the Privatization Commission pre-qualified MCB Bank Limited for the bidding process involving SME Bank Limited on June 10, 2020, and invited MCB Bank Limited to conduct the associated due diligence from July 23 to August 24, 2020.
However, as the business environment has changed significantly since March 2020, and uncertainty has increased due to the Covid-19 situation, there is now much greater focus at the end of MCB Bank Limited on its existing accounts as per regulatory guidance.
Therefore, the Management of MCB Bank has now withdrawn from the ongoing due diligence of SME Bank Limited and has formally communicated the same to the Privatization Commission. This decision also has the approval of the Board of Directors of the Bank.
