Kochi: Pakistan privatised loss making Pakistan International Airlines (PIA) at Rs 135 billion to a consortium led by a local investment company, The Economic Times reported.
Investment firm Arif Habib outplayed pre-qualified parties, Lucky Cement, private airline Airblue in the bid claimed to be done transparently.
Arif Habib emerged the highest bidder, offering Rs 115 billion, followed by Lucky Cement with Rs 105.5 billion and Airblue with Rs 26.5 billion to buy the airline.
After the bid was opened, the government announced that the reference price was Rs 100 billion. Under the rules, the two highest bidders were offered the opportunity to compete in the opening auction process.
The investor will also be required to commit an investment of Rs 80 billion over the next five years. Earlier, the government had taken responsibility for PIA’s liabilities of Rs 654 billion last year.
The auction was the second attempt at selling the airline after the first effort last year failed to attract the demanded price.
Prime Minister Shehbaz Sharif, thanked government officials and the Privatisation Commission for working for the deal.
He said the deal was the “largest transaction” ever in Pakistan’s history.
Mismanagement led to fall in reputation and services of
PIA.
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