Six parties pre-qualify for PIA divestment

ISLAMABAD: The Privatization Commission Monday pre-qualified six parties interested in the divestment of Pakistan International Airlines Corporation Limited (PIACL).

The decision was made during a board meeting chaired by Minister for Privatization and Chairman Privatization Commission Abdul Aleem Khan.

The board reviewed the recommendations of the pre-qualification committee, which scrutinized and evaluated the Statements of Qualifications (SOQs) submitted by eight parties.

After thorough deliberations and consideration of the technical, financial, and documentary requirements outlined in the Request for Statement of Qualifications (RSOQ), the board decided to pre-qualify Fly Jinnah Limited, Air Blue Limited, Arif Habib Corporation Limited, Consortium led by Y.B. Holdings (Private) Limited, comprising Pioneer Cement Limited, Artistic Milliners Limited, ANS Capital Private Limited, and Metro Ventures Private Limited; consortium led by Pak Ethanol, comprising AirSial Limited, Serene Airlines Private Limited, and Liberty Daharki Power Limited and Consortium led by Blue World City, comprising Blue World Aviation and IRIS Communication Limited.

According to the RSOQ, the consortium members, excluding the lead, may be added or replaced with the Commission’s permission 15 days prior to the bid submission date, provided the new member and consortium meet the RSOQ requirements.

The pre-qualified parties will be invited to the next stage of the bidding process to start the buy-side due diligence.

It is to be noted that the Privatization Commission received the SOQs from eight interested parties following an invitation for expressions of interest (EoI) published in leading national and international newspapers on April 2 and 3, 2024. The deadline for submissions was May 17, 2024.

Earlier this year, the federal cabinet endorsed the legal segregation plan of PIA and the Scheme, directing the Aviation Division, PIA, and HoldCo to carry out the necessary corporate and regulatory actions to implement the scheme. In April 2024, the scheme also gained approval from the shareholders and creditors of PIA.

The restructuring involves the legal separation of PIA’s core aviation business from its non-core activities and the transfer of its non-aviation-related business from PIA to HoldCo. The approval of the scheme clears the path for HoldCo to acquire 100 percent shareholding in PIA and the simultaneous issuance and allotment of shares by HoldCo to the qualifying shareholders of PIA.