Dhaka: Saudi Arabian Prince Bandar Bin Mohammad Bin Abdul Rahman al Saud is to buy Bangladesh's state-run Rupali Bank Ltd for $330 million, more than three times the size of the next highest bid, a senior Government official said on Monday.
Following suggestions from the World Bank and International Monetary Fund, Bangladesh is selling a 67 per cent stake in Rupali Bank, which has 493 branches and employs 5,731 staff.
After the sale, the Government will retain a 27 per cent stake, with another 6 per cent held by investors.
Rupali had assets worth $1.07 billion at end-2005, according to bank data.
Rupali shares have doubled in the past four sessions on the Dhaka stock exchange, with bourse officials saying the stock was quoted at 1,990 taka on Monday.
"The prince offered $330 million in the bid, which was much more than others and beyond our expectations," said Abdul Qayum, spokesman for the state Privatisation Commission.
Malaysia's MAA International Investment Ltd. and Britain's JJ Finance Ltd were disqualified in the final technical offers, the official said, leaving one rival bid from Domestic Investors Consortium of Bangladesh, of just $100 million.
"The prince offered to pay the money instantly, while the other bidders offered deferred payments," Qayum said, adding he hoped the deal would be completed by the end of next month.
Rupali Bank, which was formed in 1972 and listed locally in 1986, posted January-June net profit of $2.34 million on turnover of 857.5 million taka, according to company data on the stock exchange Web site.
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