§ Dr. HampsonTo ask the Secretary of State for Trade and Industry whether he will publish the list of potential purchasers after privatisation of the insurance services group of the Export Credits Guarantee Department.
§ Mr. Lilley[pursuant to the reply, 4 February 1991, c. 25]: The privatisation of ECGD's short-term business, currently undertaken within the insurance services group, will, as previously announced, be by means of a competition among prospective trade purchasers and consortia.
Last July, Samuel Montagu, acting on my behalf, issued a prequalification questionnaire accompanied by a preliminary information memorandum to potential investors who had expressed a written interest in acquiring the business. There was a good response to these documents from a wide range of investors.
The Government have now decided on a shortlist of potential bidders for the business. In alphabetical order, these are:
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- Assicurazioni Generali;
- Cobac;
- A consortium comprising Eagle Star and Gerling, with shareholdings of 95 per cent. and 5 per cent. respectively;
- NCM;
- Sun Alliance;
- Trade Indemnity.
The shortlisted companies have been informed of the Government's decision and are being invited to tender accordingly.
The shortlist has been selected with regard to a range of criteria including the candidates' commercial understanding of, and commitment to, the credit insurance business, their financial robustness and willingness to take over the business broadly on the basis proposed by the Government. The shortlisted candidates have all stated their willingness to bid for 100 per cent. of the business.
Prior to the submission of tenders bidders will have the opportunity of detailed discussions with ECGD, including members of insurance services management, staff representatives and the Government's advisers on the sale.
The deadline for receipt of tenders will be 30 April 1991, following which there will be a period of evaluation. Price will be an important, but not the sole, criterion to be taken into account. I reserve the right to reject any or all of the bids. The sale is not likely to be completed before the end of July, but it is our intention to proceed as quickly as possible, subject to the successful passage of the Bill through Parliament.
Normal competition legislation and procedures will apply to the sale.
Arrangements are being made for appropriate information from the invitation to tender to be laid in the Library of the House.