PIA privatisation: SECP approves restructuring scheme

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has approved the restructuring of Pakistan International Airlines Corporation Limited (PIACL), ARY News reported.

According to a press release issued by the Privatization Commission on Sunday the legal segregation of PIACL, one of the most complex restructuring exercise undertaken, has attained finality, with the SECP giving its approval of the Scheme of Arrangement on May 3 for the transfer of non-core assets and liabilities of PIACL to PIA Holding Company Limited.

This order marks a significant milestone in the collaborative efforts of the Privatisation Commission , Finance Division, Aviation Ministry and PIA to restructure the airline.

The scheme has been made effective from April 30, 2024  the press release added.

The SECP has directed the PSX, Central Depository Company and National Clearing Company of Pakistan to ensure smooth listing of PIA Holding Company Limited as per the applicable rules and regulations.

Also read: PIA inches closer to privatisation

Ten companies have reportedly shown their interest in acquiring the majority stakes in Pakistan International Airlines (PIA), it emerged last week.

Sources told ARY News 10 companies including three domestic aviation companies have submitted their applications for tenders.

Fly Jinnah, AirSial, Arif Habib Group, Shujaat Azeem Group’s consortium, Tabba, Tariq Group and Sehgal groups have also shown interest in acquiring the majority of PIA shares, the sources said.

The last date of PIA privatisation was May 3 (today) which has now been extended to 18 with aim of providing such companies with ample time to finalise their proposals.