ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has approved the Scheme of Arrangement between Pakistan International Airlines Corporation Limited (PIA) and PIA Holding Company Limited (HoldCo).
Earlier this year, the Federal Cabinet approved the legal segregation plan of PIA and the scheme and, inter alia, directed the Aviation Division, PIA, and HoldCo to undertake the required corporate and regulatory actions to implement the scheme. Last month, the scheme was also approved by the shareholders and creditors of PIA. The restructuring entails legal separation of PIA’s core aviation business from its non-core activities and the transfer of its non-aviation-related business from PIA into Holdco. The approval of the scheme paves the way for Holdco to own 100 percent shareholding in PIA and simultaneous issuance and allotment of shares by Holdco to the qualifying shareholders of PIA.
In last week, the Competition Commission of Pakistan (CCP) has approved a Scheme of Arrangements for the acquisition of 100 percent shareholding of Pakistan International Airlines Corporation Limited (PIA) by PIA Holding Company Limited (Holdco). This approval is part of the Government of Pakistan’s ongoing privatisation process for PIA.
Holdco, a public limited company wholly-owned by the Government of Pakistan, was recently incorporated to succeed to specified assets, liabilities, and subsidiaries of PIA, including its business, property, rights, and obligations both domestically and internationally. PIA, a public listed company, provides aviation and allied services such as engineering, handling, cargo, flight kitchen, and training. The federal government approved the transaction based on the “Divestment of PIACL - Legal Segregation Plan and Transaction Structure” submitted by the Privatisation Division on February 6, 2024
As many as10 major organisations have so far submitted initial documents expressing their interest for the privatisation of Pakistan International Airlines (PIA). Federal Minister for Privatization, Board of Investment and Communications Abdul Aleem Khan last week said that Privatisation Commission has extended 15 days for privatisation of PIA and Letter of Intent can be submitted till May 18 now and this date will not be extended further. He said that the privatisation of PIA, an organisation with a loss of 830 billion rupees, is in the interest of the country.
