Pakistan has requested that Pakistan International Airlines (PIA) be privatized, and eight international companies have responded.
Privatization of PIA
According to Minister for Privatization Fawad Hasan Fawad, the Privatization Commission received technical and financial proposals from eight advisory firms on Monday.
In addition, three of the eight companies are among the top 20 in the world in terms of transaction value. Rothschild & Co. is ranked 12th, having handled approximately $56 billion in total transactions. The Houlihan Lokey comes in 16th place.
However, Houlihan Lokey has handled approximately $14 billion in transactions, with Ernest and Young ranking 17th and handling approximately $13 billion in transactions.
Companies Showed Their Interest
In addition to the three companies mentioned above, five others responded to the Ministry of Privatization’s request for proposals for developing a transaction structure for the sale of PIA assets.
Furthermore, the firms were already involved in the Aviation Ministry’s competitive process to hire financial advisors for PIA’s restructuring.
Alvarez and Marsal, one of the firms, has submitted documents as part of a collaboration with Rothschild and Co.
Furthermore, Tiagra Advisory and Investment Services, Investor Advisory Services (IAS), Cruise Aerospace, Ijaz Tabasum Advisory Services, and Ceabury Securities were among the other entities involved in the Aviation Ministry’s procedure.
Minister of Privatization Statement
Fawad Hasan Fawad, Minister of Privatization, stated that technical bids would be available soon.
He also stated that interested companies can participate in the process via video links.
Moreover, the caretaker government hopes to appoint a financial adviser by the middle of November and to receive a preliminary report on the division of PIA into good and bad assets by the end of January 2024.
To read our blog on “PIACL settles $26 mn dispute with Asia Aviation Capital Ltd.,” click here.