KARACHI: The Arif Habib Corporation-led consortium has notified the Privatization Commission of its intent to acquire the remaining 25 percent of the Pakistan International Airlines’ (PIA) equity stake, the commission said on Thursday, paving the way for its complete ownership by the private sector.
Arif Habib Group secured a 75 percent stake in the PIA for Rs135 billion ($482 million) last year after several rounds of bidding, valuing the airline at Rs180 billion ($643 million). Pakistan had previously attempted to reform the debt-ridden airline, which had accumulated more than $2.8 billion in financial losses over the years.
Arif Habib Ltd. CEO Shahid Habib told Arab News in February that the consortium intends to buy the remaining 25 percent stake in the former national flag carrier.
“The consortium led by Arif Habib Corporation Limited (AHCL) has notified the Privatization Commission of its intent to acquire the remaining 25 percent equity stake in Pakistan International Airlines Corporation Limited (PIACL), paving the way for full (100 percent) private-sector ownership of the national carrier,” the Privatization Commission said in a statement.
It said that the airline’s management control is expected to be transferred on or before May 25. It said control will be transferred subject to the fulfilment of conditions set out in the agreement between the government and the consortium that was signed on Jan. 29.
The commission said that the total private sector investment in the transaction will amount to $643 million, out of which Rs55 billion [$196 million] will be payable to the government while the remaining Rs125 billion [$446 million] will be injected as fresh equity into the PIACL.
“The planned equity injection will support fleet expansion and modernization, route development, and improvements in customer service and operational systems,” the commission added.
The consortium comprises AHCL, Fatima Fertilizer Company Limited, Lake City Holdings (Pvt) Limited, The City School (Pvt) Limited, AKD Group Holdings (Pvt) Limited, and Fauji Fertilizer Company (FFC) Limited.
