The Privatization Commission Board this week approved the transaction structure for a renewed effort to divest 51 to 100 percent of the shares of the Pakistan International Airlines Corporation Limited (PIACL), along with management control.
Chaired by Muhammad Ali, the newly appointed adviser to the prime minister on privatization and chairman of the Privatization Commission, the board endorsed the proposed structure and recommended it for final approval from the Cabinet Committee on Privatization (CCoP).
The specific terms and conditions for transferring and acquiring the equity stake will be finalized during the bidding process and outlined in the bid documents, pending CCoP’s clearance. Ernest & Young LLC, a Dubai-led consortium, has been appointed as the financial adviser for this transaction.
In a separate matter, the board also decided to request a detailed briefing from the financial adviser managing the privatization of the Pakistan International Airlines-owned Roosevelt Hotel Corporation (RHC) in New York.
In December 2023, the government had appointed 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 on the entity and exploring potential transaction options, including a long-term lease, outright sale, or a joint venture with the private sector. JLL has already submitted its report to the Privatization Commission.
The board now plans to take a briefing from JLL, after which the report will be presented to the Cabinet Committee on Privatization (CCoP) for approval of one of the proposed options. Once approved, expressions of interest (EoIs) will be solicited.