Report by Engineering Post
PIA Holding Company Limited (PIAHCL) shareholders have approved divestment of as much as 75 % of Pakistan International Airlines Corporation Limited. This is going to be done through a combination of share transfer and dilution of ownership.
Under the approved structure, the majority stake is going to be transferred partly through the sale of existing shares and partly through the sale of issuance of new shares of PIA Equity Limited thereby resulting in the dilution of the company’s holding. The resolution approved by the PIA Holding Company’s shareholders has also provided for a potential transfer in future of the remaining 25 % stake subject to the exercise of a call option by PIA Equity Limited under the Share Purchase and Subscription Agreement. If exercised and required conditions were met, the residual shareholding will be transferred accordingly. In this regard, the company’s Chief Executive Officer and the Secretary have been authorized to finalize and execute all necessary agreements and documentation required and take required actions to complete the transaction.
