Bids Invited for PIA Privatisation

[Amaad Lone]

No foreign company interested in PIA.

Even Air Arabia /Fly Jinnah was approached by the government of Pakistan, on its own Air Arabia not interested in PIA.

Arif Habib Corporation is probably the next owner of PIA, with Mian Mansha possibly the backer.

[arshad.altaf]

پی آئی اے کی خریداری، ملکی اور غیر ملکی 8 کمپنیوں کی دلچسپی

کراچی ( اسٹاف رپورٹر) پی آئی اے کی خریداری میں ملکی اور غیر ملکی 8 کمپنیوں نے دلچسپی ظاہر کردی ،وزارت نجکاری کے مطابق اظہار دلچسپی جمع کرنے کا وقت جمعہ17کی شام 4بجے ختم ہونے کے بعد آٹھ اداروں سے کوالیفکیشن اسٹیٹمنٹ موصول ہوا ہے۔ان میں (1) فلائی جناح، (2) ایئر بلیو ، (3) عارف حبیب کارپوریشن لمیٹڈ، (4) سردار اشرف ڈی بلوچ ۔ شنازگی کمپنی لمیٹڈ (چین)، (5) جیریز انٹرنیشنل (پرائیوٹ) لمیٹڈ، (6) وائی.بی ہولڈنگز (پرائیوٹ) لمیٹڈ کی سراہی میں کنسورشیم، (7) پاک ایتھانول کی سربراہی میں کنسورشیم اور (8) بلیو ورلڈ سٹی کی سربراہی میں کنسورشیم شامل ہے ،نجکاری کمیشن اب قواعد و ضوابط کے تحت طے شدہ معیار کے مطابق اہلیت کا عمل انجام دے گا۔

https://e.jang.com.pk/detail/686733

[arshad.altaf]

Govt ally opposes PIA sell-off

ISLAMABAD:
The senators of the PPP, a leading party in the ruling alliance, on Wednesday opposed the privatisation of the Pakistan International Airlines (PIA) during a session of the upper house of parliament -- in a development that might threaten the fragile government set-up in the Centre.

PPP senators Quratulain Marri, Zamir Hussain Ghumro, Muhammad Aslam Abro, Poonjo Bheel, and Syed Kazim Ali Shah moved a calling attention notice over the PIA’s privatisation.

Speaking on the notice, Senator Quratulain said the PIA was the country’s national carrier and should be run under the public-private partnership mode.

She added that the salaries of the PIA employees had not been increased for years and the process of its privatisation was not transparent.

In response, Privatisation Minister Abdul Aleem Khan said the PIA’s accumulated loss had reached Rs830 billion.
He continued that it had to be seen who was responsible for unnecessary recruitments in the PIA.

“This loss was not accumulated during the tenure of a single government. It took a long period of time to reach here.”
The minister noted that it was not the job of a government to run businesses but its primary responsibility was making policies.

Full news item available at: https://tribune.com.pk/story/2467882/go ... a-sell-off

[Tuti Fruiti]

One very important question..
if PIA is so bad and in *ruins* etc etc...why everyone so interested to buy it??

[faisal-777]

One very important question..
if PIA is so bad and in *ruins* etc etc...why everyone so interested to buy it??

Because with some very basic sanity it can be turned into a good institution. Problem with government is they think too much about voter base whic his main reason preventing its transformation.

[Amaad Lone]

if PIA is so bad and in *ruins* etc etc...why everyone so interested to buy it??

Government has removed 650 billion of loans and liabilities from the balance sheet of PIA leaving it with around 200 billion

This had made PIA attractive.

It was in ruins with 5 billion a month in interest payments and revenue of around 8 billion.

[Abbas Ali]

On May 31, Privatization Commission to announce result of Expression of Interest (EoI) and statements of qualification submitted for divestment of Pakistan International Airlines Corporation Limited (PIACL) through privatization submitted by 8 organizations/companies/consortiums.

4 shortlisted organizations/companies/consortiums to be revealed and invited to submit their business plan/offers for PIA.

Abbas

[Abbas Ali]

Privatization Commission announces result of Expression of Interest (EoI) and statements of qualification submitted for divestment of Pakistan International Airlines Corporation Limited (PIACL) through privatization submitted by 8 organizations/companies/consortiums. The 219th Meeting of Privatization Commission Board was held on June 3, 2024, under the Chairmanship of Minister for Privatization/Chairman Privatization Commission, Abdul Aleem Khan.

Following 6 shortlisted organizations/companies/consortiums to be invited to the next stage of bidding process to start buy-side due diligence.

1. Fly Jinnah (FJ)

2. airblue

3. Arif Habib Corporation Limited

4. Consortium led by YB Holdings (consortium members comprises Pioneer Cement, Artistic Milliners, ANS Capital, Metro Ventures)

5. Consortium led by Pak Ethanol (consortium members comprises AirSial, Serene Air, Liberty Daharki Power Limited)

6. Consortium led by Blue World City (consortium members comprises Blue World Aviation, IRIS Communications).

Request for Statement of Qualification (RSOQ) provides that consortium members (not lead) can be added/replaced, with the permission of Privatization Commission, 15 days prior to bid submission date provided that proposed new member of consortium and consortium meets the requirements of RSOQ.

Buy-side due diligence is a process that buyers and investors perform before making a purchase to ensure they are making informed decisions. It involves examining a target company's historical and future performance to determine if it's a good investment and if the buyer is paying the right price. The goal is to understand the company's legal, financial, and operational aspects, including its value drivers, structure, cash flow, and operational costs.

Abbas

[rayyanullah]

The list of 6 short listed show how Pakistan and PIA are looked upon by the rest of the world.
Not even one major carrier has shown interest in our silver.
Surely a wake up call for Pakistani citizens who have shown the world that they are more interested in investing in the UAE rather than Pakistan.
Such a shame!

[Abbas Ali]

Bilal Hussain

KARACHI: Arif Habib, chief executive of the group that is one of the six entities which pre-qualified for the privatization process of Pakistan International Airlines (PIA), said that the government should let the bid amount from the potential buyer go into the core company, strengthening its financials and selling shares at a high price when it is revived.

“The pre-qualification list of six bidders has been announced and I expect they (the government) will soon open the data room so that all of the six prospective bidders will do the due diligence and prepare the bid. There are four things which I think the government will have to give in the policy decision, which will increase interest in bidding and its value,” said the founder and CEO of Arif Habib Corporation Limited while talking to the media on Wednesday.

“The core holding company equity is negative PKR 55 billion. Its liabilities are PKR 200 billion and the liabilities are to be paid mainly to Pakistan Civil Aviation Authority (CAA), Pakistan State Oil (PSO) and leasing companies. I think it can be renegotiated and tenure restructured with the leasing companies. But the government has to tell how much time will the new buyer get from CAA and PSO.”

Habib said that if the two government entities ask for quick clearance, there would be an immediate need for a big amount of money for the new investor, which will be difficult to arrange.

“Likewise, we have advised that the proceeds of the bid amount should go into the core company as capital. It should not be taken away by the seller. In other words, sellers should not sell their shares. They should invite new investors. New investors put liquidity in the company and dilute the government. We popularly call it the Allied Bank Model. It also happened with the Allied Bank.”

This will reduce the requirement for the potential buyer and will be able to keep its liquidity intact.

“The bidders will try to bid high because the money will go into the company making it financially healthy, where half the partners will be the government. When the revival happens, the government sells its shares at a high price and not at a low price presently.”

There should also be clarity about the routes where PIA planes can land around the world. There should also be clarity about agreement with the employees.

“Clarity on these important four matters will increase bidding interest and its price.”

https://epaper.brecorder.com/2024/06/06 ... -news.html

[Abbas Ali]

Pakistan to Hold Bidding for PIA in the First Week of August

On June 25, federal cabinet meeting chaired by Prime Minister Shehbaz Sharif was informed that companies that have pre-qualified in PIA bidding process are visiting various facilities/sites of the airline.

PIA bidding will take place in the first week of August.

Abbas

[Abbas Ali]

The pre-qualified bidders for PIA privatization process have expressed concern over continuation of European Union Aviation Safety Agency (EASA) restriction preventing operation of Pakistani airlines including PIA commercial passenger/cargo flights to/from Europe.

Pakistan's Privatization Commission is addressing concern voiced by pre-qualified bidders.

Pakistani airlines including PIA Third Country Operator (TCO) authorization by EASA was suspended from July 1, 2020, due to safety concerns.

Abbas

[fahadshakeel]

By any way: can PCAA be privatized?
I think private companies can make it better

[arshad.altaf]

Bidders interested, but wary of EU ban on PIA

ISLAMABAD: Pakistan could expect much higher foreign exchange proceeds from the sale of the Roosevelt Hotel — an upscale property in New York’s Manhattan district — with an improved mix-use sell-off transaction proposed by US advisers.

But pre-qualified bidders for Pakistan International Airlines (PIA) have expressed concerns over the European Union’s ban on Pakistani airlines, which could affect the bid price for the national flag carrier that is currently up for sale.

This was the crux of a news briefing on Wednesday, led by Privatisation Minister Abdul Aleem Khan and federal secretaries of the privatisation division and privatisation commission, Jawad Paul and Usman Bajwa, respectively.

https://www.dawn.com/news/1843709/bidde ... ban-on-pia

[Amaad Lone]

Money from the sale of the two hotels is suppose to clear debt that PIA moved to the Holding Company.

Now lets see if that money is used to retire debt and used for buying apartments.