The federal government might sell its shares in First Women Bank Limited (FWBL) to the United Arab Emirates (UAE) with a Negotiation Committee set to be formed to determine the sale price.
Earlier this month, the Ministry of Privatization disclosed that the UAE government had expressed interest in purchasing the federal government’s shares in FWBL.
In line with this, the federal government ruled for either the Commission to proceed with the bidding process or refer the transaction to the Cabinet Committee on Privatization for the constitution of a Negotiation Committee and approval of a price discovery mechanism and reference price.
The Financial Adviser initiated the valuation process of the federal government’s shares in FWBL as per the methodologies provided in the relevant laws.
Upon considering the request from the UAE government and per relevant regulations, the Federal Cabinet was requested to either direct the Commission to proceed with the bidding process or refer the transaction to the Cabinet Committee on Privatization for further deliberation.
Following detailed discussions, the Cabinet approved the Privatization Ministry’s proposal regarding FWBL.
It bears mentioning that the Cabinet Committee on Privatization first placed FWBL on the Active Privatization Program in 2018. The absence of audited accounts from FY 2018 to FY 2021 stalled the process.
The Financial Advisory Services Agreement, initially signed for two years until January 27, 2022, was extended till April 26, 2023. Further extension until April 25, 2025, was approved by the PC Board during its 23rd meeting.
