Methods of Privatization


Sale through international tender

Local or foreign buyers (Individual or Firm or Company) may participate in the "sealed confidential tender" or "open tender". Association of workers, employees and officers of the tendered enterprises may also offer bid for purchase of the enterprises.


Sale of Govt. shares in the capital market

The Commission shall arrange to sell the entire or a portion thereof of the Government shares of the public limited company identified for privatization. Such sale procedure may be accomplished through the Investment Corporation of Bangladesh (ICB) or any Member of the Stock Exchanges or any Broker Firm. If the Commission holds the view that the selling of entire shares of the Govt shall have adverse impact on the index of the share market etc, in such cases, the Commission, in the interest of the capital market, shall be authorised to hold some shares in the Govt ownership. On special cases, the Govt shares may be disposed off through tender.


Transfer of some portion of the shares to the employees of the enterprises in case of selling the shares through the stock exchanges

When it is necessary for any company to be enlisted with the stock exchanges, for privatization, the Commission may transfer a small portion of shares of the company to the employees as per the conditions specified by the Government.


Sale of Government shares of the private limited company

The Commission shall take necessary steps for selling the entire Government owned shares or a portion thereof as per provision of the company law and the Articles of Association of the concerned company. If it is not possible to sell the Govt Shares as per the provision of the Articles of Association of the concerned company, The Commission may sell it by applying any other method mentioned in the policy. The dicision of the Commission in this regard shall be deemed final.


Restructuring Method

Any enterprise under the burden of huge loan and no potential bidder has participated even when the tender has been floated twice for it, in that case the Commission shall have the right to restructure the company to make it salable.


Mixed Sales Method

The Commission may mingle together different methods for privatization, in which a part of the shares may be sold by tender and the remaining portion may be sold by Stock Exchange.


Management Contract

The Commission may invite bidders by floating an open tender for not transferring the ownership of an enterprise but for transferring the management of it for a certain period. This contract may not exceed for more than three years. But the Commission may renew the contract after the successful expiry of the contract.


Leasing Out

As an alternative to the Management Contract, but based on the same criteria, for the same purposes and for the same limited time, the Commission may lease out any enterprise identified for privatization or any part of its assets.


Direct Asset Sale (Liquidation)

If any industrial, commercial and service oriented entity, in the context of the present market condition, is deemed completely incompetent and its machinery etc. are found in such bad shape that it has no prospect in continuing its business in the competitive market; or potential buyers are unlikely to bid for it even if it is relieved of its debt-burden through restructuring, in that case the method of direct asset sale may be adopted for the enterprise. The Commission may accomplish such direct asset sale process through holding open auction.


Other Option

If the privatization of any enterprise is not possible through adoption of the methods mentioned above, the Commission may apply any other option for privatization of the enterprise. In this regard the dicision of the Commission shall be deemed final.