Decision to become part of new PIA managemnt was made at a meeting held on Wednesday
ISLAMABAD:
Fauji Fertilizer Company Limited is set to become part of the Arif Habib-led consortium that has won the bid to acquire Pakistan International Airlines Corporation Limited.
The Board of Directors of Fauji Fertilizer Company Limited (FFC) approved the company’s inclusion in the consortium at a meeting held on December 24. During the meeting, the board authorized FFC to formally join the group. Under the approval, FFC has been permitted to acquire equity shares in PIACL either directly or through a Special Purpose Vehicle (SPV).
The board also granted authority to sign all required agreements and legal documents with the consortium, the Privatisation Commission, and other relevant stakeholders in order to complete the transaction.
Read More: Govt finally cuts loose ‘white elephant’ PIA
On Tuesday, the government sold its 75% stakes in the Pakistan International Airlines for Rs10.1 billion cash to business tycoon Arif Habib-led consortium, marking the completion of the first major privatisation transaction in two decades by offloading the white elephant.
The consortium of Arif Habib, Fawad Ahmed Mukhtar, Gohar Ejaz and Aqeel Karim Dhedhi – Pakistan’s renowned businesspersons, placed the highest bid of Rs135 billion for the 75% shares in the 13th round of open auction. It beat another cash-rich consortium led by Muhammad Ali Tabba.
The Air Blue was disqualified for the open bidding after it offered Rs26.5 billion, which was nearly three-fourth less than the minimum price of Rs100 billion. The government had set a very low minimum price, even compared to the last failed attempt when it asked for Rs85 billion for 60% shares when the entity had negative equity.
Out of the Rs135 billion, the government will get Rs10 billion ($36 million) and the remaining amount will be invested in the Pakistan International Airlines (PIA) by the successful bidder, said Muhammad Ali, the adviser to prime minister on privatisation after the auction.
It was the second attempt to sell the PIA in over one year and marks the first successful transaction since 2005 when the government had sold K Electric, the country’s largest power distribution company. Prime Minister Shehbaz Sharif had desired that the PIA should be sold for Rs200 billion.
