The Privatization Commission will commence the privatization process of Pakistan International Airlines Corporation Limited (PIACL) tomorrow (Tuesday, December 23). Following the withdrawal of Fauji Fertilizer Company Limited from the bidding process, only three bidders remain in the race.
According to the schedule issued by the Privatization Commission on Sunday, bids will be submitted between 10:45am and 11:15am, while the bids will be opened at 3:30pm. As per the government’s decision, the entire process will be broadcast live on television networks.
The three remaining bidders include a consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, Kohat Cement Company Limited, and Metro Ventures (Private) Limited, a consortium including Arif Habib Corporation Limited, Fatima Fertilizer Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited; and the third bidder, Airblue (Private) Limited.
Chairman of the Privatization Commission and Prime Minister’s Adviser on Privatization, Muhammad Ali, stated in a YouTube interview that Fauji Fertilizer Company Limited had decided to withdraw from the PIACL bidding process.
He explained that after bids are submitted on Tuesday, they will be placed in a transparent box, following which the Privatization Commission’s board will meet to set a reference price. The Cabinet Committee on Privatization will then approve the reference price, which will be announced at the time of opening the bids.
He added that if the bids exceed the reference price, an open auction will be held, whereas if they fall below it, preference will be given to the highest bidder.
Under the transaction structure, the bidding will be based on the sale of 75% of PIACL’s shares. Of the proceeds from the sale, 92.5% will go to PIACL, while only 7.5% will be deposited into the national exchequer.
The remaining 25% shares will stay with the government and will remain a valuable asset. However, the successful bidder will have the option, after payment, to acquire the remaining 25% shares or leave them with the government.
