AKD Group’s inclusion ‘further strengthens consortium’ in PIA privatisation, says AHL
- Consortium remains actively engaged with PC
AKD Group has joined the Arif Habib Corporation Limited (AHCL)-led consortium participating in the privatisation of Pakistan International Airlines Corporation Limited (PIACL).
Arif Habib Limited disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“We are pleased to inform you that AKD Group, through its company AKD Group Holdings (Private) Limited, has joined the AHCL-led consortium participating in the privatisation of Pakistan International Airlines Corporation Limited (PIACL),” read the notice.
The announcement comes after the Privatisation Commission Board approved on Friday the inclusion of AKD Group Holdings (Pvt.) Ltd in the Arif Habib Corporation Limited (AHCL) led consortium.
“This inclusion is permissible under the conditions stipulated in the Statement of Qualifications (SOQs),” the Privatisation Commission (PC) said in a statement released after the board’s 242nd meeting.
Meanwhile, AHL, in its notice to the bourse, said that the inclusion of AKD Group, a leading financial institution with a strong presence in the areas of venture capital, real estate development and construction, oil and gas, and technology, “further strengthens the consortium as it proceeds through the due diligence phase of the transaction”.
The consortium now includes AHCL, Fatima Fertilizer Company Limited, City School (Private) Limited, Lake City Holdings (Private) Limited, and AKD Group Holdings (Private) Limited.
“The consortium remains actively engaged with the Privatisation Commission of Pakistan and other stakeholders to complete the due diligence process,” it added.
The government restarted the PIA sale process with a fresh EOI call in April this year, marking a renewed effort to offload its stake in the national carrier. It first set June 3 as the deadline for EOI submission, but later extended it till June 19, with all terms and conditions remaining the same.
It has been seeking to sell a 51-100% stake in the debt-ridden carrier, to raise funds and reform cash-draining state-owned enterprises (SOEs) as envisaged under a $7 billion International Monetary Fund (IMF) programme.
The government failed in the first attempt to privatise the PIA last year after receiving a single offer, well below the asking price of more than $300 million.
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