Pakistan’s board of Privatization Commission, chaired by Caretaker Federal Minister for Privatisation, Fawad Hassan Fawad, has greenlit the transaction structure for the sale of a 51 per cent stake in Pakistan International Airlines. A consortium- led by Ernst & Young - presented the proposal, suggesting the sale of the majority stake along with the division of PIA’s assets and liabilities, sources have revealed.
The Privitization Commission (PC) board endorsed the transaction, following a balance sheet adjustment where approximately 75 per cent of the PKR 825bn will be transferred to a new entity.
The parked amount is proposed to be serviced from the proceeds of the privatisation and sale of the hotels and properties. The proposal would now be presented to the Cabinet Committee on privatization for a conclusive verdict, leading to the Federal Cabinet's endorsement.
The recommended legal separation by financial advisors for the divestment focuses on isolating the core aviation business and assets, with the initial objective being the divestment of core aviation services.
Basic engineering services and international routes would be part of the core assets offered for sale to buyers.
More to follow...