Holdco given green light to acquire full ownership of PIA
The Competition Commission of Pakistan (CCP) has given the green
light to Holdco's acquisition of full ownership of Pakistan International
Airlines Corporation Limited (PIA). This move aligns with the Government of
Pakistan's ongoing privatization efforts concerning PIA.
Holdco, a publicly traded entity entirely owned by the Pakistani
government, was recently established to take over specific assets, liabilities,
and subsidiaries of PIA, encompassing its domestic and international
operations. PIA, listed publicly, offers aviation services along with ancillary
services like engineering, handling, cargo, flight kitchen, and training.
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The federal government endorsed the transaction based on the
'Divestment of PIACL - Legal segregation plan and transaction structure,'
submitted by the Privatization Division on February 6, 2024. According to the
approved scheme, Holdco will acquire PIA's entire shareholding, along with its
non-core assets and liabilities.
The relevant market in focus here is Pakistan's real estate
sector, given PIA's extensive property holdings nationwide. Nevertheless, PIA's
core aviation operations and allied services will remain within the company and
won't transition to Holdco.
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The CCP's evaluation determined that the proposed merger wouldn't
result in Holdco dominating the relevant market post-transaction, as outlined
under Section 2(1)(e) read with Section 3 of the Act. Consequently, the CCP has
cleared the merger in Phase-I.
The swift approval by the CCP underscores its dedication to
advancing Pakistan's economic revival plan, particularly by facilitating
investment through the Special Investment Facilitation Council (SIFC).
Source: The News