ISLAMABAD: Updated at 08:37 PM Thursday Night
After a day-long working and hopes against hopes, bidding for sell-off of Pakistan International Airlines (PIA) ended up at an uncertain note when Blue World Consortium, the sole bidder for the transaction, conveyed to the privatisation committee that it remains pegged to its original offer of Rs 10 billion for 60 % shares of PIA.
Earlier , the privatisation committee had termed the offer of Rs 10 billion as unsatisfactory and granted it half an hour to match the official reference price of Rs 85 billion.
After half an hour from the opening of the bid, Blue World Consortium came back to the committee with a decision that it was not going to revise its offer of Rs 10 billion.
Blue World Consortium was the only runner for acquiring 60 % shares of PIA.
Five other interested parties had already backed off from the bidding process of the national airlines.
Blue World Offers Rs 10 Bln Against Minimum Reference Price of Rs 85 Bln
Earlier Updated at 7.13 pm
Privatisation Commission has termed Blue World Consortium’s offer of Rs 10 billion for 60 % shares of the Pakistan Airlines International (PIA) as much below the reference price and asked the intending buyer to match the official reference price of Rs 85 billion in a half an hour.
The bid of Blue World Consortium was opened at around 6.30 pm today at a local hotel, which amounted to Rs 10 billion.
CCoP called the bid offer of the intending buyer for less than the official reference price.
CCoP granted the only bidder half an hour to match the official reference price or its offer will be turned down. Since only one buyer -Blue World Consortium – is the only party in the run for acquiring the majority shares of PIA.
In the case of non-matching of the official reference price , the process of PIA sell-off would stand scrapped.
In the afternoon, Blue World Consortium had submitted the bid in a sealed envelope to show interest to buy 60 % shares of PIA.
Read More: Blue Wold Consoritum Submits Bid for PIA Majority Shares
Earlier Reported: A sole bidder of Blue World Consortium submitted a bid of Rs 10 billion against the Privatization Commission set a reference price of Rs 85 billion.
A long-drawn process of several months for pIA privatization started with six bidders, which ended today after the bidding was conducted by Privatization Commission in Islamabad.
The bid prices way too low than the reserved price set by Privatization Commsission.
After the bid was submitted mid-day today (Thursday) October 31, 2024, the evening time of 06:30PM local time was set for opening the bid publically.
Read More: PIA Bidding to be completed on October 31
When the bid was opened publically from a sealed envelop, the price announced was Rs 10 billion only. It was single bid without any competition.
Pakistan government had set minimum reference or reserve price of PKR 85 billion for PIAC. Earlier, the Cabinet Committee on Privatisation approved the reference price of PIAC recommended by Privatisation Commission.
Reported at 01:00 PM Today – Blue World Submits the Bid
Blue World Consortium has submitted its bid for a 60% share of Pakistan International Airlines (PIA).
The bidding was held here at a local hotel. The Privatisation Commission board will consider and approve the bid submitted by Blue World Consortium in a sealed envelope.
Following approval of the Privatisation Commission board, the matter will be taken up by the Cabinet committee on Privatisation (CCOP).
The Privatisation Commission Board will meet at 2 pm today. This will be followed by CCOP meeting to be held today and after their approval for the bid submitted by Blue World Consortium will be opened today at 6.30 pm at the same local hotel.
Speaking to media persons after submitting the bid, Blue World Group chief, Ch Saad Nazir, said PIA is a pride of Pakistan, and we as a consortium will revamp the airlines to make it run on modern lines.
He added that Blue World Consortium will use the best technical and financial expertise to turn PIA into a profit-making entity.
Also Read: Blue World Consortium Qualifies for PIA Bidding
Ch Saad Nazir maintained that Blue World Consortium, if wins the bid, will take a maximum six months to revamp PIA and bring it back into the world best airlines.
Amir Mahmood CEO Allegiant Services and advisor for PIA transaction also spoke to the media on the occasion . He said PIA is an important transaction and its smooth completion will encourage investment in Pakistan.
