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Islamabad: A Pakistani firm won an auction yesterday with a $482m bid for a majority stake in the embattled national carrier Pakistan International Airlines (PIA), a deal seen as a litmus test of the government’s pledge to sell off loss-making state companies.
Three Pakistani firms competed in the auction carried live by state broadcasters, with representatives placing their offers in a clear box during several rounds of bidding.
The Arif Habib investment group emerged on top with a bid of 135 billion rupees for the 75 percent stake on offer. It has an option to buy the remaining 25 percent in the coming months.
“It was essential to make this process transparent because the biggest transaction of Pakistan’s history is about to take place,” Prime Minister Shehbaz Sharif told his cabinet in a televised statement as the bidding began.
The rival bidders were a consortium led by Lucky Cement, which bid 134 billion rupees, and the private Pakistani carrier Air Blue, with 26.5 billion. Founded in 1955, PIA was a symbol of national pride and rapid growth for years.
