Announcement • Nov 11
Al-Nihang Group proposed to acquire PIA Holding Company Limited (KASE:PIAHCLA) for PKR 100 billion. Al-Nihang Group proposed to acquire PIA Holding Company Limited (KASE:PIAHCLA) for PKR 100 billion on November 3, 2024. A cash consideration of PKR 100 million will be paid by Al-Nihang Group. As part of consideration, PKR 100 million is paid towards common equity of PIA Holding Company Limited and PKR 250 billion towards debt. The transaction is subject to approval by regulatory board / committee. Announcement • Nov 09
Overseas Pakistani Group Al Nihang Reportedly Offers to Acquire Pakistan International Airlines Al-Nihang, an overseas Pakistani group has offered to acquire PIA Holding Company Limited (KASE:PIAA) for the cost of PKR 100 billion amid a set of terms and conditions, Ary News reported. The bid for privatisation by Al-Nihaang comes days after both the Khyber Pakhtunkhwa and Pakistan's Punjab state governments had offered to acquire the airlines. According to Ary News, the group wrote an offer letter to Pakistan's Ministers of Privatisation, Aviation and Defence amongst other authorities and outlined its proposal to acquire complete ownership of the PIA. The key points of Al-Nihang's offer are described below. As per Ary News, Al-Nihang Group said that it will acquire the full shareholding of PIA in accordance with the terms outlined in the tender proposal, assuming comprehensive ownership. Al Nihang has also offered to pay off PIA's PKR 250 billion debt. The Express Tribune had previously reported that PIA has been under a massive debt burden of approximately USD 2.9 billion. Despite multiple bailout packages being provided to it by the government in recent years, PIA is struggling to stay afloat. Al Nihang's offer amid this background comes as a breather to the airlines. The group has also said that there will be no employee layoffs and instead offered a 100% increase in salaries over 30 months. As per Ary News, the Business Plan the introduction of modern aircraft to PIA's fleet and the group has proposed establishing PIA as an engineering and maintenance hub for other airlines. These developments came days after the Khyber Pakhtunkhwa government expressed interest in participating in the PIA privatization bidding. According to details, the KP Investment Board wrote to Federal Minister for Privatization Abdul Aleem Khan, expressing its intention to submit a bid. Earlier, Pakistan Muslim League-Nawaz (PML-N) President Nawaz Sharif said that Punjab Chief Minister Maryam Nawaz advised him to buy Pakistan International Airlines (PIA) and rebrand it 'Air Punjab.'According to Ary News, in a statement, Nawaz Sharif said, "Maryam sought advice from me, asking if we should take over the PIA and make it a brand new airline."Meanwhile, the final bidding process for the PIA privatization saw just one bid of PKR 10 billion ($36 million) for a 60% stake in the national flag carrier. According to sources, the Pakistan government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that was below the government-set minimum price of PKR 85 billion. The government is aiming to privatize the airlines with six bidders pre-qualified for the sale. This privatisation effort is in line with the recommendations given by the International Monetary Fund (IMF) to the Government of Pakistan to sell off all loss-making state-owned enterprises so as to stabilise the economy. The recent accidents make it tough for the company to gain trust during a time when it is causing heavy burdens to the national exchequer. Announcement • Sep 12
PIA Holding Company Announces Withdrawal of Director Nominee Ayesha Khan PIA Holding Company Limited announced that Dr. Ayesha Khan has formally declined to join the Board of Directors. According to information available from the Pakistan Stock Exchange (PSX), the announcement, made on August 13, 2024, cites her existing work commitments as the reason for her inability to take on the role. This development will be communicated to the TRE Certificate Holders of the Exchange, as part of the regulatory requirements and corporate governance transparency. The Board of PIAHCL is expected to consider alternative candidates to fill the vacancy left by Dr. Khan's withdrawal. This change in board composition comes at a time when corporate boards across the region are experiencing shifts in leadership dynamics, reflecting broader economic and professional trends. 