Majority stake in PIA: not yet bidders, clarifies Arif Habib Corp in PSX notice

Arif Habib Corporation Limited (AHCL), one of Pakistan’s leading business groups, clarified that submitting an expression of interest as well as the Statement of Qualification (SOQ) for the purchase of a majority stake in Pakistan International Airlines (PIA) does not imply that it has become a bidder yet.

In a notice issued to the Pakistan Stock Exchange (PSX), AHCL drew attention to a news media report that called it a bidder for the PIA privatisation process.

The company confirmed that it has indeed submitted the SOQ after the EoI to the Privatization Commission (PC).

“However, it is crucial to clarify that this submission does not constitute price-sensitive information, nor does it confer upon AHCL the status of a ‘bidder’ as implied in the aforementioned news article,” the company said in its notice to the stock exchange.

Pakistan canvasses interest in purchase of stake in PIA

The clarification comes after a report by Bloomberg last week labelled Pakistani tycoon Arif Habib and aviation-based company Gerry’s Group as being among the 10 bidders looking to buy a majority stake in PIA.

AHCL in its notice on Thursday informed that the bidders would be finalised and announced by the Privatization Commission at a more advanced stage of the process.

“As per the PC’s publicly disclosed privatization procedure, once interested parties submit their SOQs by the extended deadline i.e. 17th May 2024, the PC will furnish a comprehensive instruction to bidders document to pre-qualified participants,” the company said in its statement.

“Those pre-qualified bidders who opt to advance further in the process will then commence the due diligence process before submitting their bids or otherwise,” it added.

Pakistan’s government has previously said it was putting on the block a stake of between 51% and 100% in the loss-making airline as part of reforms urged by the International Monetary Fund (IMF).

The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on the privatisation will help cash-strapped Pakistan pursue further funding talks with the IMF.

AHCL, which operates as an investment holding company primarily focusing on strategic investments in subsidiary companies and associates across various sectors, added in its notice on Thursday that evaluating investment proposals, including submitting EoIs, is a routine aspect of its business operations.