Fauji Fertilizer to join Arif Habib consortium for PIA’s 75% stake

In a key development, Fauji Fertilizer Company Limited (FFC) on Wednesday said it has decided to join the bidding consortium led by Arif Habib Corporation Limited (AHCL) for the acquisition of a 75% stake in Pakistan International Airlines (PIA).

The development comes a day after the consortium emerged as the highest-ranked bidder with a Rs135 billion offer for a 75% stake.

“We wish to inform you that the Board of Directors of the company, at their meeting held earlier today, have approved and authorized the company to join the bidding consortium, led by Arif Habib Corporation Limited, and comprising of Fatima Fertilizer Company Limited, the Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited and City Schools (Private) Limited, which has been declared the highest ranked bidder by the PC in relation to the Transaction at the bidding process held on December 23, 2025,” FFC said in a notice to the Pakistan Stock Exchange (PSX).

AHCL-led consortium on Tuesday emerged as the winning bidder for the acquisition of a 75% stake in PIA, submitting a top bid of Rs135 billion, which was well above the government’s initial minimum price of Rs100 billion and the base price of Rs115 billion, at which the auction began.

It is pertinent to mention that three bidders participated in the race to acquire PIA’s 75% stake: 1) A consortium comprising Lucky Cement Limited, Hub Power Holdings Limited, and Kohat Cement Company Limited, 2) Metro Ventures (Private) Limited, a consortium comprising Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and 3) Lake City Holdings (Private) Limited and Air Blue (Private) Limited.

Meanwhile, the Fauji Foundation withdrew from the bidding process ahead of the submission and opening of bids.

In its notice to the bourse, FFC said that the company has been authorized by its Board to take all necessary steps to finalise and execute the requisite agreements and documents with the consortium and the Privatisation Commission in relation to the transaction to enable the company to acquire shares of PIACL, which will give the company an equity stake in PIACL, either directly or indirectly through a special purpose vehicle formed for such purpose.

“We wish to clarify that completion of the transaction remains subject to (amongst other things) (a) the Letter of Acceptance being issued by the PC to the consortium (as successful bidder) in accordance with the prescribed privatization process, (b) execution of definitive agreements between the parties to the Transaction, and (c) fulfilment of all conditions precedent to closing, including relevant and requisite corporate, regulatory and other approvals and consents.”