The Board of Directors of Lahore Stock Exchange (LSE) has decided to negotiate, for upward revision in their offers, with the four bidders who submitted their sealed bids for award of membership rights of the Exchange.
The board, which met on Saturday with Syed Asim Zafar in the chair, did not approve the offers received from four bidders, considering the amounts offered below expectations. According to LSE sources, the offered bids even did not match the reserved price.
The LSE had invited sealed bids last month for award of nine new membership rights, but only four bids of Rs 16 million each came which were opened on Friday in presence of LSE chairman Asim Zafar, Managing Director Samir Ahmed, directors and some other members of the Exchange. As the offers received were less than the LSE estimate, the board did not approve them and resolved to hold negotiations with the bidders for upward revision.
The offers have not been rejected, but the board has expressed the resolve to approach the bidders for revision of their offers, Asim told Business Recorder.
The LSE management had expected to fetch more than Rs 200 million, over Rs 20 million from each bidders, through sale of nine membership rights, but against their expectations the response was very poor.
The LSE management has kept the names of bidders secret but it is learnt that they include three individuals, including a woman, and one from the corporate sector.
Meanwhile the board also discussed various issues relating to rules and regulations pertaining to risk management and transfer of old membership rights etc MD LSE Samir Ahmed who attended his last board meeting said that the meeting approved members' current arbitration rules, regulations for system of audit of brokers, transfers of old membership rights etc. The meeting also reviewed the rules of risk management, he added.
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