By Staff Reporter
ISLAMABAD: The Privatisation Commission has recommended the formal inclusion of Fauji Fertiliser Company in the Arif Habib-led consortium that secured the auction for Pakistan International Airlines, moving the group closer to outright ownership of the national flag carrier.
The board’s endorsement on Tuesday follows the consortium’s successful bid of Rs135bn for a 75 percent stake in PIA last December. Fauji Fertiliser, which originally entered the bidding process but withdrew before the auction took place, joined the winning group on 25 December.
The commission’s decision clears the path for the consortium to acquire the government’s remaining 25 percent holding, giving it complete control of the airline once all approvals are secured. The meeting was chaired by Muhammad Ali, the adviser to the prime minister on privatisation.
In a statement released afterwards, the commission said the nomination of Fauji Fertiliser – known as FFC – had been put forward by the consortium in line with the terms of the share purchase and subscription agreement, with Arif Habib Corporation serving as the lead member. After examining the proposal, the board confirmed that FFC satisfied the relevant eligibility and regulatory requirements and gave its approval for the company’s inclusion.
The move is still subject to ratification by the Cabinet Committee on Privatisation and the full federal cabinet, as required under the governing framework. The consortium’s current line-up gives Fatima Fertiliser a 34.1 percent interest, Fauji Fertiliser 33.9 percent, Lake City 16 percent and the City School in partnership with the AKD (Aqeel Karim Dhedhi) Group the remaining 16 percent.
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