ISLAMABAD: The Privatization Commission Board on Monday endorsed the transaction structure for a fresh attempt to divest 51 to 100 percent shares of Pakistan International Airlines Corporation Limited (PIACL), along with management control.
The board, chaired by Muhammad Ali, the newly appointed adviser to the prime minister on privatization/chairman Privatisation Commission, endorsed the structure and recommended it to the Cabinet Committee on Privatization (CCOP) for final approval, a senior official confirmed.
The specific terms and conditions for transferring and acquiring the equity stake will be finalised during the bidding process and detailed in the bid documents, subject to CCOP’s clearance. The financial adviser for this transaction is Ernest & Young LLC, Dubai-led consortium. Regarding another transaction, the PC board decided to seek a detailed briefing from the financial adviser (FA) handling the privatisation of Pakistan International Airlines-owned Roosevelt Hotel Corporation (RHC), New York.
Notably, in December 2023, the government had hired Jones Lang Lasalle Americas Inc. (JLL), a Chicago-based real estate management firm, as the financial adviser for this transaction.
JLL was tasked with conducting due diligence of the entity and exploring transaction options, including a long-term lease, outright sale, or joint venture with the private sector. The adviser has already submitted its report to the Privatization Commission.
Now the board has decided to take briefing from the adviser. After that the report will be submitted to the Cabinet Committee on Privatization (CCoP) for approval of one of these options. Following this, expressions of interest (EoIs) will be called.