PIA Holding Company Limited’s (PSX: PIAHCLA) shareholders have approved the divestment of 75% of the issued and paid-up share capital of Pakistan International Airlines Corporation Limited (PIACL) to PIA Equity Limited, at an Extraordinary General Meeting. The approval marks a significant milestone in the long-awaited privatization of Pakistan’s national flag carrier.
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The divestment will be carried out through a combination of direct share transfer and dilution of the company’s shareholding via subscription of shares in PIACL by PIA Equity Limited, in accordance with the Transaction Documents under Section 183(3) of the Act.
Future Sale of Remaining Stake
Shareholders also gave the green light to the potential future sale of the remaining 25% stake should PIA Equity Limited exercise its call option under Clause 15.2 of the Share Purchase and Subscription Agreement (SPSA). Upon valid exercise of the option and satisfaction of applicable conditions, the company would be obligated to transfer the residual shareholding to PIA Equity Limited.
Implementation Authorization
The Chief Executive Officer and Company Secretary have been authorized to finalize, execute, and deliver all agreements, documents, and instruments required to complete the transaction.
Transaction Structure
| Aspect | Detail |
|---|---|
| Target Company | Pakistan International Airlines Corporation Limited (PIACL) |
| Selling Entity | PIA Holding Company Limited (PIAHCLA) |
| Buyer | PIA Equity Limited |
| Initial Divestment | 75% of share capital |
| Potential Future Sale | Remaining 25% (via call option) |
| Legal Framework | Section 183(3) of the Act |
About PIA Holding Company Limited
PIA Holding Company Limited (PSX: PIAHCLA) is the parent company of Pakistan International Airlines Corporation Limited, established to oversee the privatization and restructuring of the national flag carrier.
About Pakistan International Airlines
Pakistan International Airlines (PIA) is Pakistan’s national flag carrier, operating domestic and international flights to destinations across Asia, Europe, the Middle East, and North America. The airline has been undergoing restructuring and privatization efforts to improve operational and financial performance.
About PIA Equity Limited
PIA Equity Limited is a special purpose vehicle formed by the consortium led by Arif Habib Corporation Limited, which was the successful bidder for the acquisition of Pakistan International Airlines.
