The Privatisation Commission Board (PC Board) on Wednesday recommended the bid offer – Rs135 billion for 75% stake in the Pakistan International Airlines (PIA) – submitted by the Arif Habib consortium for consideration and approval by the Cabinet Committee on Privatisation, an official statement stated.
The development comes after Pakistan government concluded on Tuesday the sale of a 75% stake in its national carrier for Rs135 billion, giving an end to years of stalled efforts to privatise the loss-making airline.
Arif Habib consortium bought the managing stake in the national carrier. The consortium is comprised of Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
Pakistan government will get Rs10 billion in cash out of Rs135 billion. The rest of the amount will be invested in the PIA.
The overall valuation of the PIA is Rs180 billion, as the government will receive another Rs45 billion after selling the remaining 25% shares.
“The Privatisation Commission Board, in its 246th meeting held today [Wednesday] under the chairmanship of Mr Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman, Privatisation Commission, recommended the bid offer submitted by the Arif Habib Consortium for consideration and approval by the Cabinet Committee on Privatisation.
“The Board noted with satisfaction the bid amount of Rs135 billion, received against the reference price of Rs100 billion, for 75% stake of PIA,” the statement read.
After failing in its attempt to sell the national carrier last year, the government restarted the PIA sale process with expressions of interest (EOI) call in April this year, marking a renewed effort to offload its stake in the PIA.
