$PIAA Pakistan International Airlines Corp (PIAA): PIA privatization marks a major breakthrough for Pakistan – By JS Research
$PIAA
Pakistan International Airlines Corp
Rs. 22.17
+0.00%
- In yesterday’s privatization bidding for a 75% stake in Pakistan International Airlines Corporation Ltd, the consortium led by AHCL, alongside Fatima Fertilizer (FATIMA), The City School and Lake City Holdings, won the bid with an offer of Rs135bn, marking the first major privatization deal in the last two decades and fulfilling a key condition of the IMF program.
- Of the total consideration, 92.5% (Rs125bn) will be reinvested into PIACL, while the remaining 7.5% (Rs10.1bn) will accrue to the Government of Pakistan. The government will retain a 25% stake post-transaction, with bidders retaining the option to acquire this stake at a later stage, likely at a 12% premium. The deal translates into Rs34.39/sh of PIAHCLA.
- We highlight PIA privatization remains a major strategic breakthrough for Pakistan, helping the govt complete a key transaction on its privatization agenda as per IMF guidelines. The deal supports the broader objective of easing fiscal pressures by transferring a chronically loss-making SOE to private ownership.