ISLAMABAD (Kashmir English): Arif Habib consortium on Tuesday bought the managing stake in the national carrier Pakistan International Airlines (PIA) for Rs135 billion.
The government will get Rs 10.12 billion in cash out of the final bidding prices, while the rest of the amount will be invested in the PIA.
Three bids came from pre-qualified bidders: Lucky Cement, private airline Airblue, and investment firm Arif Habib.
In the first round with the Rs 100 billion reference price, Arif Habib Corporation Limited placed the highest bid of Rs 115 billion, while the Lucky Cement consortium put up a Rs 101.5 billion bid, and Airblue bid Rs 26.5 billion.
After the first round, two out of three qualified parties qualified for the next round as they submitted the bid above the minimum expected price.
In the second round, the base bid was set at Rs115bn, with the minimum increment was at Rs250 million. Both bidders engaged in a brief competition to outbid each other during the round.
However, when Lucky Cement raised its bid to Rs134bn, Arif Habib countered with Rs135bn, forcing Lucky Cement to bow out and congratulate Arif Habib.
Arif Habib Group
The consortium is comprised of Arif Habib Corporation Limited, Fatima Fertiliser Company Limited, City Schools (Private) Limited, and Lake City Holdings (Private) Limited.
Arif Habib Corporation was founded by a Karachi-based businessman, Arif Habib, in 1970. In 1970, he began his career in the brokerage industry at the Karachi Stock Exchange.
The Group holds interests in securities brokerage, investment and financial advisory, private equity, investment management, fertilizer manufacturing, cement, steel, real estate, dairy, energy, and textile mills.
