Arif Habib consortium buys PIA with highest bid of Rs135bn

Arif Habib consortium emerged as the successful bidder for Pakistan International Airlines Corporation Limited (PIACL) after offering Rs135 billion in an open auction round.

Today's auction concluded the airline's privatisation process that marks Pakistan’s first major sale of a state-owned enterprise in nearly 20 years.

The bidding process began earlier in the day with sealed offers from three pre-qualified parties: Lucky Cement consortium, private airline AirBlue, and investment firm Arif Habib. AirBlue dropped out after the initial round as its bid fell below the government’s reference price of Rs100 billion.

During the first round, Lucky Cement submitted an offer of Rs101.5 billion, AirBlue bid Rs26.5 billion, while the Arif Habib consortium offered Rs115 billion, the highest at that stage.

Following the approval of the reference price by the Privatisation Commission Board and the Cabinet Committee on Privatisation, the process moved to an open auction. A 30-minute pause was taken to allow the leading bidders to consult before the second round began.

The next round opened with a base price of Rs115 billion, later revised to Rs125 billion, with a minimum bid increment of Rs250 million. Lucky Cement increased its offer to Rs134 billion, after which Arif Habib raised its bid to Rs135 billion. Lucky Cement then withdrew and congratulated Arif Habib on winning the bid.

The entire bidding process was broadcast live on television and streamed on official government platforms.