Fauji Fertilizer Company joins Arif Habib consortium following PIA auction success
Business
Fauji Fertilizer joins Arif Habib Consortium, which secured 75% of PIA shares in a Rs135 billion auction. The consortium plans a Rs125 billion investment to improve operations and efficiency.
(Web Desk) – Fauji Fertilizer Company (FFC) has officially become part of the Arif Habib Consortium, which has acquired the 75 percent shares of the Pakistan International Airlines in Tuesday’s auction.
The consortium announced the inclusion of Fauji Fertilizer, emphasizing the strategic importance of this collaboration for the airline's financial revitalization and management expertise.
As part of the agreement, Fauji Fertilizer will play a pivotal role in the airline's management and operational improvements.
The consortium has also outlined plans to invest Rs125 billion in the first year, focusing on upgrading PIA's ground operations and enhancing overall efficiency.
Earlier this week, the Arif Habib consortium emerged as the successful bidder, securing a 75 percent stake in the national carrier with a final offer of Rs135billion.
The outcome was announced following the completion of the second and final phase of bidding, held under the supervision of the Privatisation Commission in Islamabad. Federal Minister for Finance Muhammad Aurangzeb, the Minister for Information, the Minister for Privatisation, senior government officials and representatives of the bidding consortia were present during the process, which was broadcast live.
The final round of bidding opened with a base price of Rs115 billion. During an intense series of incremental offers, Lucky Cement raised its bid to Rs115.5 billion, prompting Arif Habib to counter with Rs116 billion. The bidding continued with both sides repeatedly increasing their offers, as Lucky Cement moved to Rs116.75 billion and later to Rs120.25 billion.
Before the close of the session, Arif Habib raised its bid to Rs121 billion and ultimately sealed the contest with a final offer of Rs135 billion, surpassing Lucky Cement’s last bid of Rs134 billion.
Earlier, in the first phase of the privatisation process, three pre-qualified bidders had submitted sealed offers for the airline. Two of them, Arif Habib and Lucky Cement, submitted bids exceeding the government’s reference price of Rs100 billion, while Air Blue (Private) Limited offered Rs26.5 billion.
