Approval of 100 percent shareholding scheme of PIA for holding company
The holding company will be responsible for the PIA’s debts, certain business property, rights, and liabilities (Photo: File)
Islamabad: The anti-trust watchdog on Saturday announced its approval of the scheme of arrangement for acquisition of 100% shareholding of Pakistan International Airlines Corporation Limited (PIA) by PIA Holding Company Limited (Holdco).
In its order, the Competition Commission of Pakistan had declared that the acquisition of PIA Corporation by PIA Holding Company would not have any material impact on the market, likening the holding company to the real estate business. The Company shall be responsible for the debts, certain business property, rights, and liabilities of the PIA at home and abroad.
The Competition Commission’s order comes two days after the Privatization Board granted a 15-day extension to the deadline for submission of expressions of interest for the auction.
It should be noted that no foreign airline has shown interest in purchasing PI while 3 Pakistani airlines are participating in the auction process.
According to the Competition Commission, under the approved scheme, HoldCo will acquire 100 percent shareholding of PIA, while non-core assets and non-core liabilities will also be transferred to HoldCo, a wholly owned subsidiary of the Government of Pakistan. will be owned, PIA’s core aviation activities and related services will remain with the company and will not be transferred to Holdco, these core activities will be privatized.
Approval of 100 percent shareholding scheme of PIA for holding company