(Recasts, adds context on government privatisation plan)
HONG KONG, June 10 The government of Pakistan
will sell its stake in United Bank Ltd for up to 42
billion rupees ($426.27 million) on Wednesday, a person with
direct knowledge of the deal said, as the cash-strapped state
seeks to raise funds by selling assets.
The United Bank deal forms part of an initiative announced
earlier this year in which Privatisation Commission Chairman
Mohammad Zubair was tasked with finding buyers for 68 companies,
including 10 banks..
An official in the media department of the government
declined to comment and referred Reuters to Zubair. Zubair did
not immediately respond to telephone calls. The relevant
officials at United Bank could not be reached for comment.
If successful, the United Bank sale would be the first
divestment via the capital markets of a government stake in
The IMF saved Pakistan from possible default by agreeing
last September to lend it $6.7 billion over three years, making
the loan conditional on economic reforms such as a longstanding
promise to privatise loss-making state companies.
Arif Habib, Credit Suisse and Elixir Securities will manage
the United Bank deal, said IFR, a Thomson Reuters publication
which first reported the deal on Tuesday.
($1 = 98.5300 Pakistani Rupees)
(Reporting by S. Anuradha of IFR; and Lawrence White; Editing
by Miral Fahmy)