Privatisation Commission issues clarification on Roosevelt Hotel

ISLAMABAD: The Privatisation Commission clarified that its board neither approved the appointment of any financial advisor nor took any decision on the presentation made by the financial advisor for the Roosevelt Hotel.

In a clarification, Privatisation Commission said that its earlier press release contained some miscommunication, which requires clarification.

“The Privatisation Commission board was held on 20th August 2024. As per the agenda of the meeting, the board considered the proposal for prequalification of panel of Financial Advisors for the privatisation programme. The Selection Committee presented their recommendations for consideration. The decision, in this behalf, will be announced after confirmation of the same by the Board in its next meeting, scheduled to be held in a week’s time,” the clarification read.

It added that for the divestment of Roosevelt Hotel, M/s Jones Lang LaSalle Inc (JLL), presented a Transaction Structure Report to the Board, suggesting various options for the hotel’s transaction and responded to the queries by the members.

“The Board held an in-depth discussion on the proposed options and directed the Privatisation Commission to carry out additional analysis on the proposed options and present the same to the board in its next meeting,” the clarification read.

It added that there was no decision by the Board with respect to transaction options and its submission to Cabinet Committee on Privatisation (CCoP).

Earlier on July 3, the federal government decided to privatise the Roosevelt Hotel as the letter of intent (LOI) would be issued in the first week of August.

The Privatisation Commission approved the hotel’s privatisation through a joint venture or lease for 99 years.

Meanwhile, the government clarified that the privatisation of power distribution companies will not be possible before 2026.

The Privatization Commission also decided that the Pakistan International Airlines (PIA) would not be privatised, if a bid lower than the reference price is received.