Both Bestway and Abu Dhabi group have increased their shareholding to 29.5 percent in UBL by acquiring GDR''s worth 200 million dollars, it is reliably learnt. Both groups have jointly acquired 51 percent stake at the time of privatisation - evenly split among them for 201 million dollars.
The cost of acquisition after bonus share is estimated between Rs 30-40 per share. The low caps maximum holding by a group directly or indirectly in a bank at 29.5 percent. As such, the additional four percent has at the rate of Rs 195 per share is 5.5 times the management buy out price.
Later, the government did a public offering of 10 percent shares at Rs 55 per share, but the offer was under-subscribed and only four percent shares could be listed. After the GDR offering government''s holding is reduced to 20 percent in the bank.
Business Recorder understands that a probe has been ordered to ascertain the responsibility for the UBL share dropping from Rs 214 to Rs 206 just before the end of day trading which resulted in the GDR offering at Rs 195 instead of Rs 203. This cost the government a net loss of just under two billion rupees.
Perception given that the Bank of Punjab affair may have caused this is said to be unfounded, as other bank shares did not take a dip. And, instead it was trades by overseas investors, which resulted in the share value dropping by rupees eight in less the five minutes. When trading resumed on the next trading day, UBL share value once again touched Rs 216 per share.
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