Fauji Fertilizer board approves joining PIA privatization consortium

Fauji Fertilizer Company Limited said its board has approved joining a consortium that has been declared the highest-ranked bidder for the privatization of Pakistan International Airlines Corp. Ltd., the company said in a filing.

The board authorized the move at a meeting held earlier today, following the Privatization Commission’s bidding process on Dec. 23. The consortium is led by Arif Habib Corporation Limited and includes Fatima Fertilizer Company Limited, The Lake City Holdings (Private) Limited, AKD Group Holdings (Private) Limited and City Schools (Private) Limited.

Fauji Fertilizer said it has been authorized to take all necessary steps to finalize and execute agreements with the consortium and the Privatization Commission, as well as any other relevant parties. The steps would enable the company to acquire or subscribe to shares of PIA, giving it an equity stake either directly or indirectly through a special purpose vehicle.

The company previously informed the exchange on July 9 that its statement of qualification submitted to the Privatization Commission had been approved and that its board had authorized buy-side due diligence to evaluate a potential acquisition of PIA.

Completion of the transaction remains subject to several conditions, including issuance of a letter of acceptance by the Privatization Commission, execution of definitive agreements, and fulfillment of all conditions precedent to closing. Those include required corporate, regulatory and other approvals and consents.