Arif Habib consortium acquires remaining 25% stake in PIA

Arif Habib consortium has acquired the remaining 25% shareholding in the Pakistan International Airlines (PIA) from the government, elevating the private sector ownership in the national carrier to 100% with an aim to increase the fleet size to 50 aircrafts by September 2026.

Aqeel Karim Dhedhi, the founding chairman of AKD Group having 10.25% stake in the fully privatised airline through the consortium, said the owners had deposited the bank guarantee for the payment of Rs45 billion for the latest 25% shareholding with the government on Monday that was the last day for purchasing the remaining stake in the PIA.

Last year, the consortium acquired 75% stakes in the PIA for Rs135 billion, announcing some Rs125 billion would be reinvested in the airline, while the government earned the remaining Rs10 billion.

Giving breakup of the shareholdings in the consortium after the 100% acquisition, Dhedhi said Arif Habib Corporation and Fatima Fertilizer Company together held 34.1% stake in the national carrier, emerging as the single largest shareholder in the privately controlled PIA.

Fauji Fertilizer Company Limited now holds 34% stake, followed by Lake City Holdings (14%), AKD Group (10.25%), and City Schools (7.65%).

Also read: PIA scales back flights, revises fares

Dhedhi said the owners had submitted a bank guarantee for Rs45 billion for the remaining 25% stakes to the government.

The consortium has one year time to pay the amount.

It would pay interest money at the rate of 12% on the guaranteed amount. The interest money would be lesser the sooner they pay, according to Dhedhi.

He said the PIA was aiming to increase the fleet size to 50 aircrafts by September 2026, compared to 21 operational airplanes at present.

So far, as per AKD Group founding chairman, PIA has received offers for 120 aircrafts from around the world.

The airline needed more planes to run Hajj flights and to fly on new domestic and international routes, he said.